Volvo Construction Equipment (Volvo CE), Brussels, Belgium, said the global construction equipment industry is recovering faster than earlier predicted, as evidenced by the company’s 73 percent rise in second-quarter sales. Strongly driven by the “BRIC” markets of Brazil, Russia, India and China — which increased by 63 percent  during the quarter — the total world market for heavy, compact and road equipment increased by 43 percent during the period when compared to last year. All markets were up: Europe increased by 20 percent, North America by 9 percent, Asia by 60 percent and other markets by 77 percent.

Net sales in the second quarter, when adjusted for currency movements, increased 73 percent. Operating income also improved from MSEK 2.086 (US$283.4 million) from a loss of MSEK 1.259 (US$171 million) in the same period last year.

Olof Persson, president of Volvo CE, said, “The spring selling season is traditionally the most active period in our industry and so it is encouraging to see momentum building stronger-than-expected during this important period, particularly in Asia and South America. This puts us in good shape for the rest of the year. It is also encouraging to note that our increased sales have been accompanied by considerably increased profitability, a result of cost reduction measures implemented during the recession, improved cost absorption in our factories and better productivity.”

In another sign of improving conditions, the company said the value of the order book at the end of the second quarter was 78 percent higher than at the same date in 2009. These encouraging results have prompted a revision in the outlook for the full year 2010. The company now expects the European market to increase by 10 percent for the full year, up from the previous forecast of 0-10 percent. North America is now predicted to grow by between 5-10 percent, up from the previous expectation of 0-10 percent. The biggest upward revisions are in Asia and other international markets, with Asia now predicted to rise by 30-40 percent and other markets by 40 percent — a jump from earlier forecasts of 20 percent for both regions.