Capital Equipment News August 2019

CONSTRUCTION NEWS

Volvo CE sales rise 10% in second quarter

Improvements in the key European and North American markets, coupled with a strong focus on its service business, volume flexibility in the industrial system and tight cost control helped Volvo Construction Equipment (Volvo CE) deliver a good all round performance in its second quarter 2019 results. Net sales in the second quarter increased by 10%, amounting to SEK 26,814-million (SEK 24,403-million in Q2 2018). Operating income also continued its upwards trajec- tory, at SEK 4,153-million in the period, up from SEK 3,675-million reported in the same period the year before, equating to an operating margin of 15,5% (15,1%). The second quarter 2019 saw order intake increase by 6%, with SDLG branded products increasing by 28%. Order intake

was particularly strong in China, rising 21%, driven by strong demand for SDLG branded excavators and wheel loaders. Deliveries were up 12% in the period, again driven by growth in China and stable demand in Europe and North America. The second quarter of 2019 saw growth in Europe and North America, with a small decline in Asia (excluding China). In the period up to May, demand for construction equipment in Europe was up 5% compared with the same period the year before, while demand for large excavators, road equip- ment and articulated haulers pushed the North American market up 7%. “Volvo CE continued on the path of increased sales and improved profitability in the second quarter,” comments Melker Jernberg, President of Volvo CE. “Volume

Melker Jernberg, President of Volvo CE.

flexibility in the industrial system and tight cost control will continue to be in focus in the second half of the year.” b

First Bobcat electric excavator off production line

Bobcat has announced that the first of the company’s new E10e zero tail swing (ZTS) 1 t electric mini-excavator range has come off the production line at the Bobcat compact equip- ment manufacturing plant in Dobris, Czech Republic. Finished at 1:08 pm on 11 July 2019, the first E10e off the line has the Serial Number B4KL11001. It is headed to the Netherlands to Apeldoorn-based Inter-Techno, an authorised Bobcat dealer, where it will be used as a demo machine and is available for hire from Inter-Techno’s partner company, 123Machineverhuur. Doosan Bobcat has chosen the Dobris factory to produce the E10e for all markets worldwide, with the first machines to be sold in EMEA, with North America and then Asian markets to follow. The Netherlands, Sweden, Germany, Austria and Norway are the first to be selected in Europe, in line with research that shows the highest demand is in these countries. Subsequent sales of the E10e in other countries will depend on the readiness of markets, dealers and the demand from customers. The E10e is built on the same platform and produced on the same production line as the highly successful diesel-powered E08 and E10z mini-excavators. This line currently has a total capacity of 2 000 machines a year and can produce the re- quired mix of diesel and electric models as dictated by actual market demand.

“We are very pleased that actual demand is higher than our original expectations and production capacities. We prioritised Bobcat dealers in the Netherlands, the nordic countries, Germany and Austria. These countries have very positive public acceptance of alternative power sources,” says Jarry Fiser, mini-excavator product line director, Doosan Bobcat EMEA. b

Finished at 1:08 pm on 11 July 2019, the first E10e off the line has the Serial Number B4KL11001.

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