Volvo 2005 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 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

68 Volvo Group 2005
Volvo Aero
– improved
profitability
and new, important
contracts
Outcome 2005
• Volvo Aero met the increased demand while
maintaining cost control and improved profit-
ability.
• In November, the first components of the GEnx
engine were delivered – on schedule.
• Aero-Craft was integrated and the expansion of
its operations is ongoing.
• Volumes in the after-market business rose while
efficiency increased and costs were reduced.
Ambitions 2005
• Meet the sharp increase in demand for new
engine components while continuing to focus on
costs.
• Ensure that the development and production of
components for the GEnx engine proceeds
smoothly and on schedule.
• Integration of American component manufacturer
Aero-Craft, acquired in 2004. Expansion of these
operations to include fan housings.
• Improve after-market business by increasing
volumes and reducing costs.
Ambitions 2006
• Meet challenges in design and manufactur-
ing, particularly regarding the new GEnx
engine.
• Continue precision delivery of engine com-
ponents without losing focus on costs.
• New development assignments for the
RM12 Gripen engine.
• Increase after-market volumes and
profitability.
Net sales as
percentage of
Volvo Group sales
3%
01 02 03 04 05
11.8 7.58.08.8 6.9
01 02 03 04 05
8365653 (44) 403
01 02 03 04 05
5.5 11.1(0.5)0.1 5.8
0
0
Net sales
1
SEK bn
Operating income (loss)
1
SEK M
Operating margin1
%
1 Years 2004 and 2005 are reported in accordance with IFRS and 2001, 2002 and 2003
in accordance with Swedish GAAP. See Note 1 and 3.