Volvo 2002 Annual Report Download - page 21

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and thereby compensated for the decline
in the total market.
Market share development
During 2002, Volvo Penta strengthened
its market shares in all segments. In
Europe, positions for marine engines con-
tinued to strengthen and the now strong
share of the industrial engines market
was improved. Volvo Penta also con-
tinued to increase its shares of the North
American marine engine market and the
most apparent was the increase in market
share for diesel engines. A strong level of
demand in 2002 for industrial engines for
irrigation pumps in Saudi Arabia created
a strong position for Volvo Penta as the
leading industrial engine manufacturer in
Saudi Arabia. Volvo Penta’s launch of the
new heavy diesel engine program for com-
mercial marine traffic was also successful,
which led to gradually strengthened pos-
itions in many new growth markets.
Financial performance
Net sales in 2002 totaled SEK 7,669 M
(7,380), and operating income amounted
to SEK 647 M (658). Operating margin
for 2002 was 8.4% (8.9). The continued
strong increase in sales, combined with
cost control, contributed to the earnings
in 2002.
Production and investments
Volvo Penta’s plant in Vara, Sweden is the
only one in the world that is producing
high volumes of diesel engines developed
exclusively for marine use. These 3- and
4-liter diesel engines have contributed
greatly to creating Volvo Penta’s strong
position in the leisure boat industry. Major
investments have been made in recent
years in the Vara plant, which operated at
full capacity in 2002. Volvo Penta’s gas-
oline engines are assembled in Lexington,
Tennessee, US. The factory had high
capacity utilization during 2002. The pro-
duction of diesel engines at Volvo Penta’s
assembly plant in Wuxi, China continued
to increase.
Ambitions for 2003
Volvo Penta currently holds uniquely strong
positions as an independent engine supplier
in the marine as well as industrial engine
industry. Volvo Penta has no intention to
compete with its customers by conducting
its own production of boats or generator
sets. The aggressive product renewal
Volvo Penta started a couple of years ago
will continue during 2003. Volvo Penta is
Net sales per market Volvo Penta
SEKM 2000 2001 2002
Western Europe 3,204 3,789 3,846
Eastern Europe 30 38 99
North America 2,257 2,175 2,261
South America 160 213 127
Asia 794 988 1,141
Other markets 154 177 195
Total 6,599 7,380 7,669
now focusing its resources in order to
ensure successful product launches in all
business areas. Efforts to increase Volvo
Penta’s sales of diesel engines in the
North American market will pay off in
2003, while the recent years’ forceful
expansion of operations in Asia will continue.