Volvo 2007 Annual Report Download - page 56
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Please find page 56 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.Trucks
– the strong market in
Europe and Asia continued
The world market for heavy trucks in 2007 was somewhat lower
compared with 2006, due to the downturn in the North American
market. Demand was strong in most markets throughout the rest
of the world.
The Volvo Group’s four truck brands have broadened
and strengthened their product ranges in recent
years and entered 2008 with the strongest line-ups
thus far.
Net sales as percentage of
Volvo Group’s sales Operating margin1,2,3, %Net sales1,3, SEK bn Operating income1,2,3, SEK bn
0706050403
187.9171.3155.4136.9117.0
0706050403
15.214.811.79.04.0
66%
0706050403
8.18.77.56.63.4
1 Years 2004–2007 are reported in accordance with IFRS and 2003 in accordance with prevailing Swedish GAAP. See Note 1 and 3.
2 Excluding adjustment of goodwill in 2006.
3 Years 2006–2007 are reported according to a new reporting structure. See Note 7.
Total market
Europe’s strong economy moved at high
speed, with growth fi gures being revised
upwards, during 2007. High consumption and
construction rates generated strong demand
for various types of truck transports, which in
turn positively impacted sales of heavy
trucks.
Demand for heavy trucks rose in practically
all European markets. The industry as a whole
has been limited by insuffi cient manufactur-
ing capacity. Very strong demand was reported
in Eastern Europe as well as in Russia and the
Ukraine.
During 2007, the total market for heavy
trucks in Europe (EU-countries plus Norway
and Switzerland) amounted to approximately
329,000 vehicles, an increase of 9%. Within
Western Europe, the increase was 2%, while
there was a 57% increase in the new EU
countries.
The total European market is currently limit-
ed by the production capacity of the industry,
where order backlogs are substantial and deliv-
ery times are long. The strained production in
Europe affects the supply of trucks also on
markets in Asia, the Middle East and South
America. Order backlogs for 2008 indicate a
continued growth in the European heavy truck
market by some 5–10% compared with 2007.
In the medium-heavy segment, 10 to 15.9 tons,
the market in Western Europe remained
unchanged compared with 2006.
During 2007, the total market for heavy
trucks (Class 8) in North America declined by
40% to 208,000 trucks, compared with
349,000 trucks in 2006. The decrease is a
consequence of large pre-buy volumes during
2006 and the softer US economy. Forecast-
ing the market is diffi cult, but current expect-
ations are a demand for trucks in 2008 on the
same level as in 2007.
In Brazil, the overall market increased by
45% to 58,000 heavy trucks. Among the
larger Asian markets, China posted a 58%
increase to a new record level of 490,000
trucks over 14 tons (310,000). The market for
heavy trucks in India continued on a high level
of 193,000 vehicles during 2007 (197,000).
In Japan, the overall market for heavy trucks
fell 13% to 43,000 trucks (49,000).
Market shares
In 2007, Volvo Trucks’ market share for heavy
trucks in Europe 29 increased to 14.6% (14.3).
Renault Trucks’ market share in Europe
decreased to 9.7% for heavy trucks (10.6). In
the medium-duty truck segment, Renault Trucks’
market share was 12.5% (14.3) and Volvo
Trucks’ market share was 5.7% (3.7).
In Eastern Europe, Volvo’s market share
increased to 18.2% (17.5) and Renault’s share
was 7.9% (10.2).
During 2007, Volvo Trucks’ and Mack Trucks’
market shares in North America declined to
9.3% (10.2) and 7.3% (9.2) respectively.
In Japan, Nissan Diesel’s market share
amounted to 21.6% (20.7).
In the Brazilian market, Volvo’s share
declined by 1.7% to 13.6%.
52 Business areas 2007