Volvo boosted 14% in Q2

Volvo Construction Equipment (VCE) has reported worldwide second quarter sales for 2005 of £701m, an increase of 14% compared to the same period last year.

Operating profit for the quarter rose by 25% to £68.7m, while its operating margin increased to 9.8% in spite of higher raw material prices.

The company said negative factors such as increasing steel and tyre prices were offset by rising volumes, a good product mix and cost reductions.

According to VCE, the total world market for heavy and compact construction equipment within Volvo’s product segments increased by 10% during the quarter, with all worldwide regional markets growing.

Figures for the first six months of 2005 show VCE global sales have increased to £1.2bn, an increase of 12% compared to 2004.

Leif Johansson, president and chief executive,said the second quarter of 2005 was one of the best ever and the company continued to take market share with its renewed product line.