Volvo 2014 Annual Report Download - page 75

BOARD OF DIRECTORS’ REPORT 2014 GROUP PERFORMANCE
In general the Volvo Group maintained or increased its market
positions in the main markets. In Europe the combined market
share for heavy-duty trucks amounted to 24.4% (24.3) and in
North America it increased to 20.1% (18.8). In Brazil the market
share in heavy-duty trucks increased to 21.3% (20.0) while it
amounted to 18.8% (18.7) in Japan. In India the market share for
Eicher amounted to 30.7% (30.4) in the medium-duty segment
and to 4.3% (4.4) in the heavy-duty segment.
Orders and deliveries
In 2014, a total of 203,124 trucks where delivered from the
Group’s wholly-owned operations, an increase of 1% compared to
200,274 trucks in 2013. Deliveries increased in North America
and Asia while they declined in Europe and South America.
Order intake to the Group’s wholly-owned operations increased
by 3% to 219,791 (214,301) trucks with an increase noted in
North America, fl at order intake in Asia and decreases in Europe
and South America.
Improved underlying profi tability
In 2014, net sales in the truck operations increased by 7% to SEK
190,904 M (178,474). Adjusted for changes in exchange rates,
net sales increased by 5%.
Operating income excluding restructuring charges amounted
to SEK 5,622 M (6,824), while the operating margin excluding
restructuring charges was 2.9% (3.8). Restructuring charges
amounted to SEK 1,464 M (679). Operating income was nega-
tively impacted by a provision of SEK 3,790 M related to the EU
antitrust investigation.
Excluding restructuring charges and the provision, the improve-
ment in underlying profi tability compared to 2013 is mainly an
effect of improved gross margins from positive price realization in
Europe, higher volumes and gross margins in North America,
lower operating expenses from the effi ciency program as well as
higher earnings in the aftermarket. This was partly offset by lower
volumes and gross margins in South America.
Earnings were negatively impacted by SEK 1,404 M from lower
net capitalization of research and development expenses com-
pared with 2013. Changes in currency exchange rates had a
negative impact on operating income of SEK 260 M compared
with 2013.
Roll-out of new products continued
In Europe, Volvo Trucks’ new truck generation continued to
be successful and advanced its position in the market and
Renault Trucks’ products were delivered to an increasing
number of customers. Renault Trucks’ new T-range was voted
“International Truck of the Year 2015”. For more information on
Renault Trucks’ T-range please see page 34.
Among product news in North America, Volvo Trucks announ-
ced Model Year 2016 enhancements for signifi cant fuel savings.
Volvo Trucks’ VN series highway tractors will deliver even greater
fuel savings compared with previous generation models through
an assortment of aerodynamic and powertrain enhancements.
Among news on the Mack side were a new LR Refuse series
and Mack mDRIVE Automated Manual Transmission was made
standard on the Mack Pinnacle model.
In the fall the Volvo facilities in Curitiba, Brazil were host to the
successful launch of new Volvo truck range. By mid-November,
more than 3,000 truck customers, dealers and sales staff from
Brazil and Latin America had taken part in the introduction of the
Net sales by market
SEK M 2014 2013
Europe 72,757 73,640
North America 53,696 40,314
South America 19,669 23,318
Asia 29,264 26,740
Other markets 15,518 14,462
Total 190,904 178,474
Deliveries by market
Number of trucks 2014 2013
Europe 72,458 82,088
North America 57,714 44,755
South America 23,741 29,137
Asia 32,339 28,692
Other markets 16,812 15,602
Total 203,124 200,274
Non- consolidated operations
Eicher (100%) 30,375 31,422
DND (100%) 107 213
Total volumes 233,606 231,909
Renault Trucks’ complete new range
Renault Trucks has a completely new range of trucks
for long-distance haulage, construction and distri-
bution applications. Since the introduction in 2013
the trucks have been rolled-out in a growing number
of markets.
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new Volvo FH, Volvo FM and Volvo FMX - the largest update of the
Volvo range in Brazil to date. The new trucks began reaching dealer-
ships in January 2015.
During the year, the new Volvo Trucks range also arrived in
Asia. Over a two-week event, taking place in Seoul, Korea, the
new Volvo Trucks range was introduced to customers and media
from all over Asia – with overwhelming feedback. Starting May, 12
more than 1,600 visitors went through a product experience
program that allowed them to learn everything about Volvo Trucks’
new product range.
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