Volvo 2007 Annual Report Download - page 57
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Please find page 57 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.Market shares in Europe,
heavy trucks Market shares in Europe,
medium-duty trucks Market shares in North America,
heavy trucks Market shares in Japan,
heavy trucks
07060706
9.7%10.6%14.6%14.3%
Volvo Trucks Renault Trucks
Volvo Trucks
1 Inom segementet
Renault Trucks
07060706
12.5%14.3%5.7%3.7%
Mack Trucks Volvo Trucks
07060706
7.3%9.2%9.3%10.2%
1 In hea
segment
Volvo TrucksNissan Diesel
07060706
0.3%0.4%21.6%20.7%
Diesel, net sales were unchanged.
Strong demand, combined with competitive
products, contributed to favorable price devel-
opment in Europe, South America and large
parts of Asia. Increased volumes in Europe
and an advantageous product and market mix
contributed to increased earnings as did
improved profi tability in the dealer system
and aftermarket business. On the other hand,
operating income was negatively affected
by increased research and development
expenses, which is a consequence of higher
amortization of previously capitalized R&D
expenses and lower capitalization of current
R&D expenses.
The production increase in Europe resulted
in higher production costs through overtime,
extra shifts and increased outsourcing activ-
ities. In North America the operating income
was affected by continued low deliveries of
trucks and an increase in warranty reserves
for phased-out legacy engines and quality
issues on truck engines produced for the
North American market during 2007.
Net sales by market
SEK M 2006 2007
Europe 93,282 108,651
North America 50,605 27,255
South America 9,213 11,483
Asia 8,975 26,593
Other markets 9,190 13,910
Total 171,265 187,892
Deliveries by market
Trucks 2006 2007
Western Europe 97,074 100,106
Eastern Europe 17,343 27,964
North America 70,499 33,280
South America 11,646 15,264
Asia 12,817 39,916
Other markets 10,552 19,826
Total 219,931 236,356
Nissan Diesel’s operations generated a
contribution to operating income of SEK 486
M, including a negative effect from acquisition
adjustments totaling SEK 495 M.
Production
The number of trucks manufactured within the
Volvo Group was 209,615 (211,286). Produc-
tion at Volvo Trucks declined to 100,092 ve-
hicles (106,884). Production of Mack Trucks
declined to 19,363 vehicles (36,768). Renault
production declined to 62,222 vehicles
(67,634). Nissan Diesel produced a total of
37,234 trucks during 2007 (41,037). During
April 1–December 31, 2007, when Nissan
Diesel was part of the Volvo Group, 27,938
trucks were produced (30,090). During the
period, Nissan Diesel also produced 7,580
light-duty trucks for Nissan Motor (23,891).
Earnings
In 2007, the truck operation’s net sales posted
an increse of 10% to SEK 187,892 M
(171,265). Operating income was SEK 15,193 M
(14,828 in 2006, excluding adjustment of
goodwill in Mack Trucks) and operating mar-
gin reached 8.1% (8.7). Nissan Diesel contrib-
uted with SEK 20.308 M to net sales. Adjusted
for exchange rate differences and Nissan
Business areas 2007 53