Volvo Construction Equipment (CE) has reported a fall in sales for the third quarter of 2016 despite an improved order intake.

Orders rose by 17% in the same period, while Volvo CE鈥檚 operating margin for the three months also grew from 4.8% to 5.2%

But outside Europe, this failed to translate into a similar result in turnover, with net sales down 3% overall and 2% when adjusted for currency fluctuations.

Despite higher orders in France, Germany, South America and Asia, lower orders were reported from Norway, Russia and the Middle East. Total sales were just over SEK11.5 billion (US$1.3 billion). Adjusted operating income was SEK601 million ($67 million).

鈥淒espite continued low demand, operating margin improved slightly in the third quarter,鈥� said Volvo CE president Martin Weissburg.

鈥淔urther positives were that orders increased from low levels in Brazil, India and China. We see no immediate increase in demand and will continue the internal work to focus on Volvo CE鈥檚 strongholds.鈥�

The company said its increased sales in North America were partly driven by new compact equipment with Tier IV final compliant engines. Asian sales were 24% up on the back of increased orders for Volvo branded excavators and other products.