Volvo 2007 Annual Report Download - page 72
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Please find page 72 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.Volvo Aero
– leader in lightweight designs
Volvo Aero develops and manufactures advanced engine
components for aircraft and space rockets.
Volvo Aero is moving from being primarily a manu-
facturing partner to playing an increasingly
import ant role with greater responsibility for
development work on new engines. The company’s
unique technologies – including world-leading
efforts in the area of lightweight designs – are
increasingly more in demand within the aero-
space industry and are contributing to providing
Volvo Aero an extended involve-
ment in new aircraft engines.
Specialized expertise
Climate and environmental
issues have recently come
into greater focus for the
entire aerospace industry.
Everyone is in agreement
that emissions need to be
reduced. Lightweight designs, which are one
of Volvo Aero’s areas of strength, have a large
impact on fuel consumption and the corre-
sponding aircraft emissions. As a result,
demand for Volvo Aero’s lightweight technol-
ogy has also increased signifi cantly over the
past year. To further strengthen its position in
the fi eld of lightweight technology, Volvo Aero
acquired a composites company in December,
whose expertise will now be transferred to
future aircraft engine components.
By utilizing Volvo Aero’s expertise in light-
weight designs, simulation and new patented
manufacturing methods, engine manufactur-
ers can shorten lead times for development of
engines, which are also quieter and lighter.
The end result is less weight and reduced
costs, two key parameters for future air-
craft engines.
These technolo-
gies are based on
successful synergies
between civilian and
military aircraft and
within the fi eld of space propulsion, where
Volvo Aero also plays an important role within
the European space program.
Several important milestones
Volvo Aero’s expansion into the commercial
component sector continued during 2007.
Work on developing components for General
Electric’s new GEnx engine, the single most
important investment in Volvo Aero’s history,
continued according to plan. During the year,
testing was completed, demonstrating that
Volvo Aero’s newly developed technology ful-
fi lled the stated requirements.
February 22 marked an important milestone,
with a GEnx engine making its maiden fl ight on
GE’s test plane. On July 3, the GEnx engine
passed the critical “fan blade out” test, where a
fan blade is blown loose from the engine.
With the aim of reducing production costs
and increasing its international competitive-
ness, Volvo Aero is investing more than SEK
1.5 billion in production equipment at its facil-
ities in Trollhättan, Kongsberg and Newington.
The new multifunction facility in Trollhättan
was inaugurated in March, the most modern
of its kind within the aircraft engine industry.
During the year, Pratt & Whitney signed an
agreement with Volvo Aero to redesign a
component for the GP7000 engine for the
Airbus A380. The contract is a major success
for Volvo Aero’s lightweight designs initiative.
Net sales as percentage of
Volvo Group sales, % Operating margin1,2, %Net sales1,2, SEK bn Operating income (loss)1,2, SEK M
0706050403
7.68.27.56.98.0
3%
0706050403
6.94.411.15.8(0.5)
07060504
03 529359836403
(44)
1 Years 2004-2007 are reported in accordance with IFRS and 2003 in accordance with prevailing Swedish GAAP. See Note 1 and 3.
2 Years 2006-2007 are reported according to a new reporting structure. See Note 7.
The Airbus A380 is the largest passenger aircraft in
the world. Volvo Aero manufactures engine compo-
nents for both engine alternatives for the A380.
68 Business areas 2007