Volvo 2000 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2000 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

41
more than 80% of all large new aircraft. The production plants in Trollhättan, Sweden and
Kongsberg, Norway both posted all-time records for deliveries of engine components. The
company’s sales related to military engines increased. Despite difficult after-
market conditions Volvo Aero Services, formerly the AGES Group, reported
higher parts sales.
Operating income
Net sales by Volvo Aero exceeded SEK 10 billion during 2000, in line with the company’s long-
term expansion plan. Operating income increased by 6.3 % to SEK 621 M (584), including a
refund from SPP of SEK 106 M. The increase was attributable to highly favorable trends for
aerospace components and military engines, partly offset by declining profitability within
Volvo Aero Services and Engine Services.
Production and investments
During 2000, investments were made in engine alliance programs for commercial aero engines
(GE90 for future jumbo jets), military engines (F414 for the F18 E/F, Super Hornet) and com-
ponents for space propulsion (nozzles and turbines for the Ariane-5 rocket engines).
Ambitions for 2001
Deliveries of new aircraft will remain at a high level during 2001. This will translate into high
deliveries of engine components. Volvo Aero is planning to further expand its components
business, by entering into new engine programs or through acquisitions.
Continuous growth of revenue passenger miles (RPM) and high load factors will ultimately
lead to increased demand for parts and services. The restructuring of the parts redistribution
business will also have a positive impact. By utilizing the synergies between Engine Services,
Aviation Services and leasing operations, Aero will lower the costs for material supply signifi-
cantly.
During 2001, Volvo Aero aims to further strengthen its capacity within the large market for
JT8-engine maintenance. During the first half of 2001, Aero will open a supplementary
JT8D-200 engine service facility in Trollhättan.
Several countries are planning to purchase new jet fighter aircraft. Volvo Aero is supporting
Saab/BAe in its efforts to win further export orders for Gripen jet fighters.
Strategic development
Volvo Aero’s ambition is to continue the expansion through organic growth and acquisitions.
Parallel efforts will be made to consolidate the company and further improve profitability
through continued productivity improvements and cost reductions. Under the terms of long-
term supply agreements, Volvo Aero Services now offers total support management, including
purchase of parts and total inventory supply responsibility.
All-time highs for deliveries
of engine components