Volvo 2001 Annual Report Download - page 9

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5
Financial performance
Consequently to business conditions, the
operational result was unsatisfactory. The
North American downturn affected all our
businesses, particularly the truck operations
which operated under difficult conditions.
In Western Europe, Volvos operations
continued to be strong, with exception for
Buses that had to face a decline on all major
markets. Construction Equipment and
Financial Services reported lower, but still
stable operational results. Volvo Penta con-
tinued to generate good profits, in fact the
best ever on a full-year basis. Volvo Aero
reported reasonable strong earnings despite
the downturn in air traffic.
The continued focus on cash flow
improving activities resulted in a positive
cash flow for the year.
Capitalizing on the strength of the
Volvo Group
The severe business climate, in combination
with future emission standards drive the
industry consolidation. Through the acquisi-
tion of Mack and Renault V.I., Volvo has
achieved a strong global position that pro-
vide the scale and strength for sustainable
profitability and the achivement of our
wanted position.
The wanted position in 2005 is to be
number one in image and customer satisfac-
tion, to have a profitability above industry-
average and to be number one or two in size,
alternatively grow at a superior rate.
We have already reached some of these
positions. Our growth rate is well above the
objectives. Volvo is today the world’s second
largest provider of heavy trucks and buses
and the other business areas are all growing
fast and are well-positioned in the world
market. When it comes to customer satisfac-
tion and image, we are as described above,
developing products and services at a rate
that few of our competitors have been able
to cope with.
It has been a challenging year during
which we have taken difficult decisions that
affected many employees. Despite this, we
have implemented a strong renewal of the
product portfolio and extensive restructur-
ing measures that together strengthen
Volvo’s competitiveness. The Group has a
sound structure with well-positioned busi-
ness areas, which increases our ability to
devote even greater energy to our brands,
retailers and customers. We will capitalize on
these strengths during 2002.
Leif Johansson
March 7, 2002