Volvo reduces losses in Q3

Volvo Construction Equipment (VCE) has cut its losses in the third quarter from £113m in Q2 to £70.4m, on net sales down by 38% on the same period last year at £732m (£1.2bn). It puts the reduction in losses down to efficiency measures, inventory reductions and adjusting costs to current demand.

It said the total number of plant and road machinery items sold around the world was 42% lower in the third quarter of 2009 compared with the same period last year. The European market was down by 54%, North American has halved and Asia has declined by 11%.

The company said only China is showing strong growth, 45%, due to a rapid flow of funding into its construction industry. In the third quarter Asia accounted for over a third of VCE’s net sales – putting it on a par with Europe.

VCE’s president and chief operating officer Olof Persson is confident the company will improve its market position as it is well placed for the new emission regulations with new products and services.