Swedish equipment manufacturer Volvo Group’s North American construction equipment orders spiked in the third quarter as dealers began placing 2024 orders after a slow 2023.
Volvo Construction Equipment received 1,064 construction equipment orders in North America, up 101.7% quarter over quarter and 195.6% year over year, due in part to weakness in Q3 2022 and 2024 pre-orders, Volvo Group Chief Executive Martin Lundstedt said during the company’s earnings call Wednesday. Meanwhile, the company’s worldwide equipment orders fell 17.2% QoQ and 26.6% YoY to 10,288, according to Volvo Group’s earnings report.
“Dealers now are allowed to place orders for the first semester next year,” Lundstedt said. The global decline is the result of cooling demand in China and a “cautious” slowdown in Europe by dealers and customers, he said.
Volvo Truck’s North American truck order intake totaled 17,355 for Q3, up 99.3% QoQ, but down 6.9% YoY, while the company’s global new truck orders landed at 47,202 in Q3, down 2.3% QoQ and 27% YoY, according to the report.
Truck orders remain restricted by region as supply chain constraints continue to ease, Lundstedt said. While Europe and North America show signs of normalizing, Volvo Trucks continues to manage inflationary pressures and balance costs, he said.
North American deliveries strong
North American deliveries for trucks and construction equipment increased during the third quarter, leading all regions in YoY growth.
Volvo delivered 15,041 trucks to North America in Q3, up 13% YoY, while worldwide truck deliveries ticked up 3.7% YoY to 55,274, according to the earnings release. Deliveries continue to fluctuate quarterly amid supply chain issues and limited deliveries, Lundstedt said.
“When it comes to volume development, we increased despite turbulent times,” he said. “Despite continued supply chain constraints … we are maneuvering through the archipelago here.”
Electric equipment orders, deliveries up
Meanwhile, deliveries and orders for electric Volvo equipment increased in Q3, as the company continued to expand electrification efforts to meet buyer preferences, Lundstedt said.
Worldwide deliveries for electric Volvo, Renault Trucks and Mack units increased to 796 trucks in Q3, up 235.9% YoY according to the earnings release. Orders for Volvo’s electric trucks also increased in Q3, reaching 1,106 units, up 26.8% YoY.
Orders for Volvo’s fully electric compact equipment stood at 217 units in Q3, up 30.7% YoY, according to the earnings release. Deliveries of Volvo’s fully electric compact equipment increased 63.7% YoY to 239 units.
“Electrification orders and deliveries continued to increase year over year as an increasing number of our customers are now entering into decarbonization in order to meet their mid- and long-term targets,” Lundstedt said. “Transport buyers are more and more keen on getting ahold of transport capacity. It takes time, but we see that this is a strong momentum.”
Shares of Volvo [OTC: VLVLY] were trading at $19.91 as of market close Friday, down 1.4% or 28 cents from market open. Volvo has a market capitalization of $41.47 billion.