Volvo 2007 Annual Report Download - page 71
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Please find page 71 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.Increased growth and strong focus on •
profi tability.
Broadened customer base in industrial •
engines.
Delivery precision and shortened lead •
times in production.
Strengthened market shares in the •
inboard segment.
Good cost control and positive cash •
fl ow.
SEK 100 M investment in increased •
production capacity in Vara, Sweden.
Focus on delivery capacity to ensure •
favorable product supply in the market.
Intensify work to ensure a positive prod-•
uct cost development.
Establishment of a new global dealer •
network structure.
Continued introduction of soft products •
and service programs.
Ambitions 2007 Outcome 2007 Ambitions 2008
Market trend
Marine engine sales in Europe continued to
increase during 2007 and Volvo Penta’s pos-
ition as a world-leading supplier of marine
diesel engines strengthened.
The new drive system with forward-facing
propellers, IPS, continued to experience very
strong growth and has signifi cantly strength-
ened Volvo Penta’s position in the inboard
segment.
On the industrial engine side, diesel-
powered generator sets, or gensets, is by far
the most important product for Volvo Penta,
which strengthened its global market share in
this segment during the year.
Earnings trend
Sales increased by 9% to a total of SEK 11,719
M compared with SEK 10,774 M during the
previous year, due to strong growth within both
Marine Leisure and industrial engines. Operat-
ing income totaled SEK 1,173 M compared
with SEK 1,106 M a year earlier. Operating
margin amounted to 10.0% (10.3).
Production and investments
Volvo Penta invested SEK 100 M during the
year in increased production capacity at the
engine plant in Vara, where the high-perform-
ance D4/D6 diesels are manufactured. Fol-
lowing that investment, plant capacity is now
18,000 engines annually.
At Volvo’s joint engine and transmission
plants in Skövde, Lyon and Köping, Volvo
Penta has contributed to high capacity utiliza-
tion through strong sales of 9-, 12-, and
16-liter engines as well as sterndrives and IPS
units.
Net sales by market
SEK M 2006 2007
Europe 6,111 6,798
North America 2,815 2,674
South America 221 274
Asia 1,359 1,624
Other markets 268 349
Total 10,774 11,719
Engine volumes
No. of units 2006 2007
Marine engines 66,615 67,333
Industrial engines 20,878 23,728
Total 87,493 91,061
Business areas 2007 67