Volvo 2001 Annual Report Download - page 46

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42
BUSINESS AREAS
Volvo Penta
Volvo Penta is a world-leading and global
manufacturer of engines and complete
power systems for both marine and indus-
trial applications. The company serves cus-
tomers in all parts of the world, primarily
within three areas of activity: Marine
Leisure, Marine Commercial and Industrial.
Based on a platform of the Volvo Group’s
large production volume of engines, Volvo
Penta develops high-performance power
products for a variety of application areas,
including leisure boats, workboats, power-
generating equipment and forklifts.
By supplying technologically superior
products focused on performance and oper-
ational reliability, and sensitivity to customer
demands on effective service solutions,
Volvo Penta has developed a global leader-
ship position as a supplier of engines and
power systems, and one of the industry’s
strongest brands. With more than 5,000
dealers in some 130 countries, Volvo Penta
has a unique strong global presence.
Volvo Penta has extended its product
range in all business segments through a
number of successful introductions during
the past years. The activity levels for new
product introductions will remain high, with
launches over the next few years resulting in
a renewal of the existing range. In 2001
Volvo Penta increased its sales and captured
new market shares in marine leisure with the
new 3-liter KAD300 diesel engine, which
has generated very strong demand among
boat builders in all parts of the world.
97 98 99 00 01
Net sales, SEK bn
4.5 4.9 5.8 6.6 7.4
97 98 99 00 01
Operating income,
SEK M
181 95 314 484 658
97 98 99 00 01
Operating margin, %
4.1 1.9 5.5 7.3 8.9
Net sales as
percentage of
Volvo Group sales
4 %
During the year Volvo Penta also successful-
ly launched the new D2-55 diesel engine for
sailboats.
Efforts to strengthen Volvo Penta’s indus-
trial product range included the introduction
of a new 12-liter diesel engine and 5- to 7-
liter engines for mobile applications. In the
marine commercial segment, Volvo Penta
has extended its customer offering up to
2000 horsepower output, which has gener-
ated new business opportunities for both
propulsion and auxiliary engines.
Total market
The world market for marine and industrial
engines weakened toward year-end, primari-
ly due to the slowdown in the global econo-
my. Total demand in Europe remained
strong, however, while the total market in
North America decreased significantly. Total
volumes for industrial engines in Asia and
the Middle East remained strong. In Brazil,
the market for diesel engines for generator
sets increased following a temporary energy
crisis in the country.
Business environment
The consolidation in the boat building
industry continued during the year.
Independent boat builders have strength-
ened their positions in the market and Volvo
Penta has managed to increase its market
shares in this business environment.
The trend is similar in the industrial
engine business with independent genset
manufacturers gaining market shares from
engine manufacturers that delivers complete
gensets.