Volvo Construction Equipment reported 2021 sales of about $9.7 billion, up 13 percent over 2020 sales of about $8.6 billion. Operating margin was 13.3 percent.
“The industry continues to be confronted by the effects of the ongoing Covid-19 pandemic in combination with additional challenges such as transport disruptions, global component shortages and an overwhelmed supply chain,” said Melker Jernberg, president, in a prepared statement.
“Yet thanks to the dedicated work of my colleagues, partners and suppliers, we have continued to deliver good profitability and took several important steps forward in our efforts to lead the transition to a carbon-neutral construction industry. The greater flexibility, digitalization and innovation across our products and services—not forgetting the stringent targets we have set ourselves in building a better world—have contributed towards a solid performance for 2021.”
The Sweden-based company said the European market was up 27 percent with a high level of infrastructure investments and a recovery in the rental segment. North America sales grew 23 percent supported by investments in commercial real estate and strong housing construction. South America’s increase of 65 percent was largely driven by a high demand for commodities. The world’s biggest construction equipment market of China, however, reported a drop of 1 percent while all other regions in Asia, particularly in Korea and Southeast Asia, continued its rising market development of 19 percent.
Sales in North America accounted for about $1.8 billion in 2021, up from about $1.4 billion in 2020.