Volvo 2005 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2005 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

62 Volvo Group 2005
Buses
– restructuring
results in increased
profitability
Net sales as
percentage of
Volvo Group sales
7%
01 02 03 04 05
16.7 16.612.014.0 12.7
01 02 03 04 05
470(94)
(524)
(361) 253
01 02 03 04 05
(3.1) 2.8(3.0)(0.7) 2.0
0
0
Net sales
1
SEK bn
Operating income (loss)1, 2
SEK M
Operating margin 1, 2
%
2 Excluding restructuring costs and write-down of shares.
Outcome 2005
• Earnings-improvement program included the
closure of the plant in Heilbronn, Germany.
• A new industrial and commercial structure was
established in Mexico. Restructuring work in
China commenced.
• The new standardized Volvo B9S chassis is the
base for buses in a number of markets.
• Increased component commonality between the
buses and trucks within the Volvo Group, such as
common engines in Euro 3, Euro 4 and Euro 5.
Ambitions 2005
• Continue to conduct earnings-improvement
program.
• Initiate restructuring of operations in Mexico
and China.
• Continue to standardize the global product
program to secure economies of scale.
• Increase component commonality between the
buses and trucks within the Volvo Group.
Ambitions 2006
• Continue the implementation of the earn-
ings-improvement program within Volvo.
• A reduction in product costs through such
measures as increased standardization and
enhancement of the production process.
• Renewal of the engine program to meet the
requirements of Euro 4 and Euro 5.
• Improved customer service through
expanded cooperation with dealers and
service centers.
1 Years 2004 and 2005 are reported in accordance with IFRS and 2001, 2002 and 2003 in accord-
ance with prevailing Swedish GAAP. See Note 1 and 3.