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64 Volvo Group 2005
Construction
Equipment
– increased sales
and strengthened
profitability
Net sales as
percentage of
Volvo Group sales
15%
01 02 03 04 05
4.2 7.93.91.9 6.5
01 02 03 04 05
21.1 34.823.2
21.0 29.4
01 02 03 04 05
0.9 2.80.90.4 1.9
Net sales1
SEK bn
Operating income
1, 2
SEK bn
Operating margin 1, 2
%
Outcome 2005
• Sales of spare parts, accessories and services
rose 20%.
• Sales in international markets increased 23%.
• Volvo CE Rents opened ~40 new rental outlets.
• Bilia’s distribution network now fully integrated.
• Delivery of machines with 9- and 12-liter
engines certified for Tier 3 commenced.
• Introduction of the EC 700 B excavator and an
entirely new generation of motor graders, the
G 900 series.
Ambitions 2005
• Grow and develop the after-market and the
range of services offered.
• Continue the dealer development program on a
global basis.
• Expand rental operations.
• Further strengthen distribution network
acquired from Bilia.
• Introduce Tier-3 engines in the US.
• Launch products for new segments and new
customer groups.
Ambitions 2006
• Further develop excavator business.
• Capitalize on investments made in Korea,
China and Germany.
• Continue to focus on the after-market and
on rental operations, as well as reduce
expenses for sales and administration.
• Continue the dealer development program.
• New products and services for new seg-
ments and customers.
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.
2 Excluding restructuring costs.