Volvo 2009 Annual Report Download - page 51

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Product renewal
With an aggressive focus on product develop-
ment and product renewal, Volvo Penta has
created a modern and complete product pro-
gram that is being sought by increasing num-
bers of boat-builders and industrial engine
customers throughout the world.
In recent years, Volvo Penta has acceler-
ated the pace of launches of soft products
through such steps as the launch of a new joy-
stick for engines with Aquamatic drives and a
new satellite-based positioning system.
Financial performance
In total, net sales amounted to SEK 8,159 M,
compared to SEK 11,518 M in the preceding
year. The operating loss amounted to SEK 230
M compared to an operating income of SEK
928 M in the preceding year. Operating margin
amounted to a negative 2.8% (Positive 8,1%).
The operating loss is explained by lower
sales volumes, low cost coverage in the pro-
duction during the rst half of the year and
costs related to layoffs.
Production and investments
Production in the plants in Vara, Sweden and
Lexington, USA was gradually lowered in line
with falling demand for marine engines. Volvo
Penta also implemented substantial reduc-
tions of both permanent and temporary per-
sonnel.
During the year, Volvo Penta continued to
invest in a new, global logistics system that
Outcome 2009
Substantial cutbacks in production capacity and •
number of employees.
Launch of new, global logistics system commenced.•
The industrial engine business accounted for more •
than 40% of sales.
Ambitions 2010
Manage risks towards suppliers and customers. •
Secure positive cash ow and favorable protability •
in new market conditions.
Strengthen positions within mobile applications for •
industrial engines.
Ambitions 2009
Secure favorable protability also in weaker market •
conditions.
Secure successful implementation of new, global •
logistics structure.
Continue to expand industrial engine business to •
improve balance between business segments.
Net sales by market
Volvo Penta, SEK M 2008 2009
Europe 6,604 4,390
North America 1,962 1,100
South America 367 284
Asia 2,098 2,054
Other markets 487 331
Total 11,518 8,159
Engine volumes
Volvo Penta, No. of units 2008 2009
Marine engines 51,270 25,755
Industrial engines 26,061 19,228
Total 77,331 44,983
fully implemented will enable substantial ef-
ciency improvements in the entire chain from
order to delivery.
47