Volvo 2002 Annual Report Download - page 19

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Financial performance
Volvo CE’s net sales amounted to SEK
21,012 M (21,135), up 3% adjusted for
currency effects. The increase was main-
ly a result of increased market shares fol-
lowing the expanded product range.
Operating income in 2002, was SEK 406
M (891, excluding restructuring costs)
and operating margin 1.9% (4.2). The
lower earnings were primarily explained
by deteriorating market conditions in
North America, changes in the product
mix and costs for the introduction of new
products.
Production and investments
A number of new products were success-
fully launched in 2002, including the B-
series of crawler Excavators with Volvo
engines, the L120E, L150E, L180E,
L330E Wheel Loaders, the new B-series
of Motor Graders, also equipped with
Volvo engines, and furthermore the L20B
and L25B Compact Wheel loaders.
During the fall, production of the new
internally developed Backhoe Loader
commenced in a state of the art factory in
Wroclaw, Poland. At the end of the year,
production of the acquired range of Skid
Steer Loaders started in Volvo CE´s fac-
tory in Asheville, North Carolina.
In order to reduce costs and adapt to
present market conditions, Volvo CE
decided at the end of the year to concen-
trate production of Articulated Haulers to
two factories instead of three.
Ambitions for 2003
Since it is anticipated that the market
conditions will be tough also during 2003
a tight cost control is of outmost import-
ance. Volvo CE’s ambition is to increase
market shares and capitalize on the
recently launched new products and the
Net sales per market
Construction Equipment
SEKM 2000 2001 2002
Western Europe 10,029 10,326 10,383
Eastern Europe 255 341 454
North America 5,823 6,145 5,667
South America 776 847 709
Asia 2,484 2,773 3,048
Other markets 626 703 751
Total 19,993 21,135 21,012
extended product range, i.e. the Backhoe
Loaders and the Skid Steer Loaders. The
Rental initiative will be further developed.
The new factory for production of Ex-
cavators in China will be important to the
company development since China is the
fastest growing and one of the biggest
market for crawler excavators. At the end
of 2003, Volvo CE will introduce a new
Telehandler to the market. In the market-
ing area the ambition is to continue with
the dealer development program.