Volvo 2007 Annual Report Download - page 67
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Please find page 67 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.Continued development of excavator •
business.
Penetration of the domestic market for •
wheel loaders in China.
Continued upgrade of the industrial •
system to satisfy customer demand.
Focused strategy for India and Russia.•
Continued focus on tools in order to •
reach new customer segments.
Comprehensive product renewal. New •
C-Series excavators, production begun
in Europe and North America.
Lingong offers instant strong position in •
Chinese wheel loader sector.
Over SEK 1.5 billion earmarked for •
capacity increases.
Acquisition of Ingersoll Rand road devel-•
opment division.
Strong growth for parts penetration, •
fi nancial services and customer support
agreements.
A coordinated approach for attachment •
options.
Integrate and develop road machinery •
product offering.
Maximize opportunity of Lingong busi-•
ness in China.
Focused strategy for India, Russia, China. •
Strengthen compact equipment prod-•
uct offering.
Continue research on biofuels and •
hybrid technology.
Continue to develop specialist applica-•
tion focused equipment.
Execute investments for increased •
capacity and improved productivity.
Ambitions 2007 Outcome 2007 Ambitions 2008
Strong growth
Net sales in Construction Equipment rose by
27% to SEK 53,633 M (42,131). Adjusted for
changes in the exchange rates and the acqui-
sitions of Lingong and Ingersoll Rand’s road
development division, net sales rose by 19%.
Operating income rose 4% to SEK 4,218 M
(4,072) and the operating margin was 7.9%
(9.7). The operating income was negatively
impacted by increased production costs,
introduction of new components, integration
costs and exchanges rates.
Acquisitions
The acquisition of Ingersoll Rand’s road devel-
opment business has sharply strengthened
Volvo’s presence in road construction work.
The acquired business includes heavy com-
pactors, asphalt pavers and milling machines.
In addition, the acquisition includes 20 deal-
erships in North America and distribution
companies in Europe and Russia.
Volvo CE’s newly formed Road Machinery
business has manufacturing units in the US,
Germany, India and China.
Products
In 2007, more than 40 new machines were
introduced, among others new series of prod-
ucts within three of Volvo CE’s core product
segments. Products launched in 2007 com-
prised:
• E-Series range of articulated haulers - new
suspension system.
• F-Series range of wheel loaders.
• C-Series crawler and wheeled excavators.
• Long reach demolition excavators.
• Short swing excavators.
• CareTrack remote machine monitoring
system.
• Tracked forestry carriers.
• Excavator-based range of Pipe-layers.
Furthermore, the acquired companies added
another 80 products to the Volvo CE port-
folio.
Net sales by market
SEK M 2006 2007
Europe 20,326 25,294
North America 11,280 11,170
South America 1,358 2,155
Asia 6,903 12,179
Other markets 2,264 2,835
Total 42,131 53,633
Business areas 2007 63