Volvo 2014 Annual Report Download - page 80
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The Volvo E
C
2
50
D excavator i
s
mad
e
for
heavy-duty production, excelling at applicatio
that require brute
f
orce earth moving and he
a
craning to deep excavations
.
Product rationalization set to improve profi tability
To adapt the cost structure and address profi tability of certain
products, Volvo CE announced that it was to discontinue product
development and production of Volvo-branded backhoe loaders
and motor graders in Europe and Americas. In the future some of
these models will be produced by its Chinese company SDLG and
delivered on selected markets. Combined with other effi ciency
enhancement measures, including ceasing making milling
machines, this will result in a workforce reduction of about 1,000
employees.
Investments
Changes to the industrial footprint included the inauguration of
the state-of-the-art technology center in Jinan, China. Engineers
at the 50,000 m2 site will develop products and components for
customers in emerging markets. The company also opened a new
test and development center in Hapcheon, Korea. In addition,
Volvo CE inaugurated a new Customer Center at its North Amer-
ican headquarters in Shippensburg, Pennsylvania.
Low emissions were in focus in the company’s operations, with
its factory Braås, Sweden becoming Volvo CE’s fi rst carbon neutral
premises and the fi rst construction equipment production facility
in the world to be powered entirely by renewable energy.
Net sales by market
SEK M 2014 2013
Europe 17,215 16,356
North America 10,784 8,319
South America 3,234 3,314
Asia 18,458 21,911
Other markets 3,164 3,539
Total 52,855 53,437
Net sales, SEK bn
1413121110
52.9
53.4 52.963.663.553.8
Deliveries by market
Number of machines 2014 2013
Europe 14,174 13,522
North America 7,127 5,240
South America 3,669 3,568
Asia 33,648 44,892
Other markets 2,699 3,564
Total deliveries 61,317 70,786
Of which:
Volvo 36,755 38,155
SDLG 24,445 32,631
Of which in China 19,964 27,559
BOARD OF DIRECTORS’ REPORT 2014 GROUP PERFORMANCE CONSTRUCTION EQUIPMENT
ns
a
vy
Operating income* and operating margin*
SEK M
%
1,231
13
2,592
4.9
14
1,231
2.3
12
5,667
8.9
11
6,812
10.7
10
6,180
11. 5
*Excl. restructuring charges
76