Volvo 2010 Annual Report Download - page 43

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Outcome 2010
• Volvo Aero has implemented development and delivery in the main according to plan.
• Successful work with higher productivity, shorter lead times and reduced costs.
• Increased market shares during 2010.
• Review implemented, resulting in the divestment of Volvo Aero Services.
Ambitions 2011
• Deliver design, hardware and serial manufacture of engine
components according to commitments.
• Increase productivity, shorten lead times and reduce costs.
• Increase volumes in engine maintenance.
Net sales as per-
centage of Volvo
Group sales
Operating income (loss)
and operating margin
Net sales
SEK bn
3% (4)
SEK M
%
10
286
3.7
09
50
0.6
08
359
4.7
07
529
6.9
06
359
4.4
10
7.7
09
7.8
08
7.6
07
7.6
06
8.2
Net sales by market
Volvo Aero, SEK M 2009 2010
Europe 3,942 3,768
North America 3,508 3,599
South America 34 27
Asia 205 233
Other markets 114 81
Total 7,803 7,708
Volvo Aero Services was divested at the beginning
of October to investment company H.I.G. Capital.
Increased air traffic
During the year, international passenger traffic rose
8.2% following the deep recession in 2009. The
load factor rose to 78.4%. The international cargo
traffic rose 20.6% in 2010 compared with 2009.
Aircraft manufacturers Airbus and Boeing
delivered 972 aircraft during 2010, which was 1%
less than 2009. The total order intake was 1,269
aircraft, 121% more than in 2009. The manufac-
turers’ total order intake rose 2% to 6,995 air-
craft at the end of 2010.
Improved profitability
Net sales decreased 1% during the year to SEK
7,708 M, compared with SEK 7,803 M in 2009, pri-
marily due to the lower USD and the divestment of
Volvo Aero Services. Adjusted for exchange-rate
fluctuations and the sale of Volvo Aero Services,
sales rose 9%.
The divestment of Volvo Aero Services, which
was implemented at the beginning of October, had
a negative impact of SEK 538 M on operating
income. Consequently, the operating profit
amounted to SEK 286 M (50). The operating mar-
gin was 3.7% (0.6). Factors behind the improve-
ment were primarily lower costs, higher productivity
and increased sales in the core operations.
7.7 286
39