Volvo 2003 Annual Report Download - page 17

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15
America, and changes in currency exchange
rates. Adjusted for currency effects, net
sales were down 8% compared with 2002.
The operating loss, excluding write-down
of shares, rose to SEK 361 M, compared
with a loss of SEK 94 M in 2002. The weak-
er result compared with the year-earlier peri-
od was largely related to lower volumes,
continued price pressure and currency
effects. In the fourth quarter, a write-down of
the holding in Henlys Group Plc was made
in an amount of SEK 429 M. In December
2003, the decision was taken to close the
bus body plant in Aabenraa, Denmark. The
cost for the closure amounted to SEK 42 M.
Production and investments
During the year Volvo produced 7,223
(9,113) buses and bus chassis, of which
35% were complete buses. The degree of
utilization in the production system in
Europe and North America decreased as an
effect of the downturn in the market. In
2003, Volvo Buses decided to close the bus
body plant in Aabenraa, Denmark. Some
200 employees will be affected by the clo-
sure.
Ambitions for 2004
Volvo Buses’ ambition for 2004 is to contin-
ue implementing a comprehensive program
to achieve profitability. Restructuring of the
commercial and industrial operations in
Europe will be completed. The product pro-
gram will be standardized and globalized to
secure economies of scale. Focus during
2004 will also be placed on capital utiliza-
tion and cash flow, primarily through reduc-
ing lead times.
Number of vehicles invoiced Buses
2001 2002 2003
Western Europe 2,899 3,076 2,782
Eastern Europe 216 337 305
North America 3,128 1,945 1,553
South America 1,009 495 369
Asia 2,209 2,639 2,227
Other markets 492 567 581
Total 9,953 9,059 7,817
Net sales per market Buses
SEKM 2001 2002 2003
Western Europe 6,263 6,695 6,153
Eastern Europe 373 409 381
North America 6,847 3,838 2,984
South America 757 366 329
Asia 1,839 2,022 1,447
Other markets 596 705 684
Total 16,675 14,035 11,978