Volvo 2009 Annual Report Download - page 50

SEGMENTS 2009
By delivering high-tech products with a focus on performance, reliability and environmental
characteristics, and by satisfying customer demands for efcient service solutions, Volvo
Penta has become a leading global supplier with one of the strongest brands in the industry.
Volvo Penta
– the leisure boat market
affected by the downturn
ith approximately 4,000
dealers in some 130
countries, Volvo Penta
has a uniquely strong
global presence.
Volvo Penta contrib-
utes with substantial synergies and economies
of scale to the Volvo Group’s total production
of diesel engines and transmissions. Roughly
10% of the Group’s total volume of diesel
engines are sold by Volvo Penta. The majority
of these volumes consists of industrial engines
for gensets – a business where Volvo Penta
has market-leading positions through custom-
ers such as SDMO, Genpower, Kohler and
Shanghai Dingxin Electric Group.
The ambition is to signicantly increase the
sales in other industrial engine segments such
as mining equipment, stone crushers and
materials handling. Global customers in these
segments – for instance Kalmar Industries,
Pramac and Sandvik – can utilize Volvo Group’s
complete product and service offering to have
global support for their operations.
On the marine engine side, Volvo Penta
delivers engines and drive systems to world-
leading boat builders such as Fairline, Sun-
seeker, Riviera, Four Winns, Jeanneau/Bene-
teau and Cranchi.
With innovative technological solutions and
integrated drive systems, Volvo Penta creates
considerable advantages for customers in the
form of lower fuel consumption, increased
comfort onboard and more efcient boat
production.
During the year, Volvo Penta delivered its
10,000th IPS unit – the acclaimed drive system
with forward-facing propellers and steerable
drive units that was launched in 2005. The IPS
program has gradually been extended with
new and larger drive units linked to the Volvo
Group’s 11-liter and 13-liter engines, which
means that Volvo Penta can offer drive systems
for boats up to 100 feet.
Total market
The global nancial crisis and economic down-
turn meant that the market for leisure boats in
Europe and North America declined substan-
tially, in some segments by as much as 70%.
The industry has been hit hard by bankruptcies
and problems with nancing, and many boat
builders were from time to time forced to shut
down their factories completely.
The markets for industrial engines and com-
mercial marine engines have also declined, but
the swings have not been as severe as for
leisure boats.
In Asia and many markets in other parts of
the world, for instance the Middle East and
South America, demand for industrial engines
and marine engines continued to be relatively
stable.
W
4% (4)
Net sales as percentage of
Volvo Group sales
1) Years starting 2006 are reported according to a new
reporting structure. See note 7.
Volvo Penta provides engines and power systems
for leisure and commercial craft, as well as for
industrial applications such as diesel-powered
gensets, cranes and container handlers.
Number of employees
1,358
Position on world market
Volvo Penta is the world’s largest producer of
diesel engines for leisure boats and a leading,
independent producer of industrial engines.
08070605
(230)SEK M
%
9281,1731,106943
(2.8) 8.110.010.39.6
Operating income
1
Operating margin
1
09
Operating income and operating margin1
0908070605
8.2 SEK bn11.511.710.89.8
Net sales1
46