Volvo 2003 Annual Report Download - page 19

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17
Financial performance
Volvo CE’s net sales amounted to SEK
23,154 M (21,012), up 18% adjusted for
currency effects. The increase was mainly
attributable to all-time-high volumes as a
result of the expanded product range.
Operating income in 2003 was SEK 908 M
(406) and the operating margin 3.9% (1.9).
The improved earnings were primarily related
to increased volumes, which were strongly
offset by negative currency effects.
Production and investments
Over the past two years Volvo CE has
launched more than 40 new products to the
market. The product portfolio is now in a
highly competitive position. During the spring
of 2003, production of excavators began in
the new facilities located in the Pudong area
outside Shanghai in China. The new factory
ramped up production to around 1,200
machines a year. In addition, the dealer net-
work expanded and in the beginning of
2004, there were 19 dealer partners sup-
porting Volvo CE in China.
Ambitions for 2004
Volvo CE’s ambition for 2004 is to capitalize
on the recently launched new products and
the extended product range to increase
market shares. The dealer development pro-
gram will continue, focusing on integrating
the acquired network of former Bilia dealers
in Europe and on developing and divesting
the former L.B. Smith distribution network in
the US. The Rental initiative will be further
developed and additional rental stores will
be opened in Europe and North America. In
China, the new production plant for excava-
tors is important, since China is the fastest-
growing and one of the largest markets for
crawler excavators.
Net sales per market
Construction Equipment
SEKM 2001 2002 2003
Western Europe 10,326 10,383 11,576
Eastern Europe 341 454 772
North America 6,145 5,667 5,428
South America 847 709 636
Asia 2,773 3,048 3,707
Other markets 703 751 1,035
Total 21,135 21,012 23,154