Volvo 2007 Annual Report Download - page 13
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Please find page 13 of the 2007 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.was launched for larger boats. Markets were
strong in the industrial engine segment and
Volvo Penta has advanced its positions with a
renewed product program based on the
Group’s new engine platforms.
Volvo Aero ended the year with a rising
operating margin during the second half due
to continued favorable profi tability in the com-
ponent operations and an improved aftermar-
ket business. Volvo Aero has major successes
in it participation in the GEnx aircraft engine
program and has scored a breakthrough with
its lightweight technology for aircraft engine
components.
Combined with our broadened range of
services, accessories and spare parts, the
customer fi nancing activities in Financial Serv-
ices are an important component in our striv-
ing toward an in-depth cooperation with the
customers. Financial Services continued to
develop well, with stable profi tability and favo-
rable return.
Responsibility for sustainable
development
The threat to the climate is the greatest prob-
lem of our time. As one of the world’s largest
vehicle manufacturers, we have a responsibility
to reduce the environmental impact from our
own production and from our products. If we
succeed in this respect, we strengthen our own
and our customers’ competitiveness, while
simultaneously contributing to a positive social
development.
Already in our business concept, it is stated
that we apply our combined knowledge to pro-
vide transport-related products and services
with superior quality, safety and environmental
care. We have a long tradition of responsible
business and we have the fi nancial and technical
prerequisites demanded to develop the ve-
hicles that future customers will want. During
the year we displayed seven trucks, all of
which could be driven carbon-dioxide neutral.
The trucks are equipped with diesel engines
modifi ed to operate on seven different renew-
able fuels. We are also far advanced within
hybrid technology development. Environmental
care are one of our most prioritized areas, and
backed by our resources and know-how we
can and will be part of the solution.
Long-term profi tability generates
shareholder value
As a result of the development in recent years,
Volvo has strengthened its profi tability and its
ability to generate good cash fl ows, and in
2007 slightly more than SEK 20 billion was
transferred to the shareholders through divi-
dends and share redemptions. Prior to the
2008 Annual General Meeting, the Board of
Directors proposes a dividend of SEK 5.50 per
share for the 2007 fi scal year, corresponding
to 74% of the year’s profi t. If the Annual Gen-
eral Meeting approves the dividend proposal, it
would mean that the ordinary dividend will
have increased for 15 consecutive years, with
an average of 21% annually. Profi tability for
the Volvo Group during 2007 will also benefi t
employees. They have made excellent efforts
during an intense year, work hard for the con-
tinued successful development of the Group
and will receive a distribution of SEK 450 M in
our profi t-sharing system.
We have entered 2008 with good order
books, a very strong product program and with
an overall favorable demand in our main markets
outside North America. The focus is now on
ensuring our delivery capacity with a competi-
tive cost base, on increasing productivity in the
entire operations and on making sure that the
economies of scale that come from increased
volumes also result in increased profi tability.
My mission together with my colleagues around
the world is to ensure that the Volvo Group can
continue its positive development.
Leif Johansson
President and CEO
Following the acquisitions of Nissan Diesel, Lingong
and Ingersoll Rand’s road development division, we
now have a signifi cant industrial structure in Asia, with
a presence in Japan, China and, when the expected
cooperation with Eicher is in operation, also in India. These are
rapidly growing markets and we want to be part of that growth.
A global group 2007 9