Volvo 2015 Annual Report Download - page 100

Forward Drive was launched during 2015 with strong market
interest in North America and global recognition as a revolution-
ary innovation in the marine industry. Forward Drive’s patented
design – combining a traditional sterndrive with forward-facing,
dual counter-rotation propellers and adjustable-trim drive – pulls
the boat through the water rather than pushing it. Additionally,
new gasoline engines were also launched – a 5.3 liter V8 line and
a new 4.3 liter V6 – both with significantly improved fuel economy
and lower emissions. The winning combination of the Forward
Drive and the new gasoline engines has been a key differentiator
for Volvo Penta in 2015.
As electronics make inroads into the marine industry, Volvo
Penta is developing integrated features beyond the engine and
propulsion components alone. Under an Easy Boating concept,
Volvo Penta is working toward “helm-to-prop” solutions with a
strong focus on comfort and user-friendliness.
Marine Commercial
In the Marine Commercial segment, Volvo Penta focuses on opti-
mizing uptime and total cost of ownership for the professional
marine market, supplying power and propulsion systems from 50
– 600 kw. The engines can be used for a wide variety of applica-
tions, with a specific focus on high speed transportation of people
and goods. Examples of applications include pilots, sea-rescue,
ferries, coast guard and off-shore wind farm supply vessels. In the
Marine Commercial segment, Volvo Penta leverages its IPS con-
cept, which provides unique environmental and maneuverability
features as well as significantly reduced fuel consumption.
In 2015, the first quadruple installation of IPS was successfully
implemented in commercial boats – seven, 26 meter crew trans-
fer catamarans used for offshore wind farming.
An updated version of the D16 marine diesel was released with
features that offer customers greater benefits and increased versa-
tility. This includes the new generation of Volvo Penta’s proprietary
monitoring and control system, Electronic Vessel Control (EVC).
The Marine Commercial business is project based and Volvo
Penta works in close cooperation with ship yards, designers and
operators to ensure that the propulsion system in each case sat-
isfies the demands of the operator. Developing our total offer is
the focus, with the ambition to exceed our customers’ expecta-
tions. Recent examples of this include providing extended cover-
age and the ability to deliver replacement engines with speed to
customers that experience a break-down. Volvo Penta’s marine
customers have access to one of the world’s strongest service
support organizations comprising approximately 4,000 dealer-
ships worldwide.
Net sales, SEK bn
15
14
131211
9.4
7.8 9.47.67.68.4
Operating income* and
operating margin*
SEK M
%
1,102
14
729
9.4
15
1,102
11.7
13
626
8.3
12
549
7.2
11
825
9.8
*Excl. restructuring charges
Market Development
The marine leisure market remained unchanged compared to pre-
vious years, but Volvo Penta’s market shares increased slightly.
The marine commercial market lingered on low levels, but showed
positive signs in certain sub-segments, such as offshore supply
and wind farming vessels.
The fragmented market for industrial off-road engines showed
mixed signs with certain sub-segments, such as mining and con-
struction, showing growth in Europe and North America. The mar-
kets in Brazil, Russia, and China continued to decline. Especially
for China, the outlook is negative due to general economic devel-
opment.
The market for industrial power generation engines showed a
positive growth rate with a stable development in North America
and the export-oriented European market.
Positive sales and earnings trend
Volvo Penta’s net sales increased by 21% to SEK 9,406 M com-
pared with SEK 7,790 M in 2014. Adjusted for changes in
exchange rates, net sales increased by 13%. Operating income
excluding restructuring charges amounted to SEK 1,102 M (729).
Restructuring charges amounted to SEK 16 M (5). The operating
margin excluding restructuring charges was 11.7% (9.4). Earnings
were positively impacted primarily by a good volume development
and positive product mix. Changes in currency exchange rates
also had a positive impact on operating income in an amount of
SEK 319 M.
VERSATILITY FOR WORLD-
LEADING
APPLICATIONS
Volvo Penta diesel engines are built to be versatile. They are
characterised by high performance, reliability, fuel efficiency,
andlow emission levels. The engines are developed to satisfy the
equipment builders’ demands. Low weight, compact designs,
andeasy installation make them perfect for numerous machine
and equipment applications in several different industries.
GROUP PERFORMANCE BOARD OF DIRECTORS’ REPORT 2015 VOLVO PENTA
98