Volvo 2015 Annual Report Download - page 91

Renault Trucks new range contributes to
strengthening the brand and is a founda-
tion to recapture market position. The
Renault Trucks T Tanker is one example
–it has been developed to meet stringent
demands in terms of payload and safety.
PAYLOAD AND
SAFETY RENAULT
TRUCKS
T TANKER
amounted to 20.1% (21.3) while it was 18.9% (19.4) in Japan. In
India the market share for Eicher amounted to 33.5% (32.6) in the
medium-duty segment and to 3.7% (3.6) in the heavy-duty seg-
ment. In China Dongfeng Trucks had a market share of 13.8% (14.4)
in the heavy-duty segment and 18.9% (17.2) in the medium-duty
segment.
Orders and deliveries
In 2015, a total of 207,475 trucks where delivered from the
Group’s wholly-owned operations, an increase of 2% compared
with 203,124 trucks in 2014. Deliveries increased in Europe and
North America while they were flat in Asia and declined in South
America and Other markets.
Order intake to the Group’s wholly-owned operations declined by
10% to 198,057 (219,791) trucks with an increase in Europe, flat
order intake in Asia and decreases in North America, South
America and Other markets.
Improved profitability
In 2015, net sales in the truck operations increased by 12% to
SEK 213,978 M (190,904). Adjusted for changes in exchange
rates, net sales increased by 2%.
Operating income excluding restructuring charges increased
toSEK 21,549 M (5,622), while the operating margin excluding
restructuring charges was 10.1% (2.9). Restructuring charges
amounted to SEK 2,032 M (1,464). Earnings included capital
gains from sales of shares in Eicher Motors Limited amounting to
SEK 4,608 M and SEK 772 M from a favorable outcome in an
arbitration case. In 2014, operating income was negatively
impacted by a provision of SEK 3,790 M related to the EU anti-
trust investigation.
NET SALES BY MARKET
SEK M 2015 2014
Europe 83,767 72,757
North America 73,017 53,696
South America 11,624 19,669
Asia 31,589 29,264
Other markets 13,982 15,518
Total 213,978 190,904
DELIVERIES BY MARKET
Number of trucks 2015 2014
Europe 86,448 72,458
North America 64,507 57,714
South America 11,069 23,741
Asia 31,979 32,399
Other markets 13,472 16,812
Total 207,475 203,124
Non- consolidated operations
VE Commercial Vehicles (Eicher) 35,751 30,375
Dongvo (Hangzhou) Truck Company (UD) 105 107
Dongfeng Commercial Vehicle Company 113,931 –
Excluding restructuring charges, the capital gain, the arbitra-
tion case and the provision, the improvement in underlying profit-
ability compared to 2014 was mainly a result of a favorable
currency development, higher sales of new vehicles and spare
parts and services as well as lower operating expenses. Favorable
earnings development in North America and Europe was partly
offset by significantly lower earnings in Brazil.
Changes in currency exchange rates had a positive impact on
operating income of SEK 3,401 M compared with 2014.
Enhanced features on trucks
Among product news were Volvo Trucks automatic all-wheel drive
for improved drivability and economy. The new feature Automatic
Traction Control activates the drive on the front axle automatically
when in motion, if the truck risks getting stuck. The driver enjoys
improved maneuverability, and the owner benefits from lower fuel
consumption and less wear and tear on the truck.
Volvo Trucks also introduced Tandem Axle Lift, which makes it
possible to disengage and raise the second driven axle. This gives
better road grip and up to 4% lower fuel consumption when the
truck is driven without a load. The new function is designed for
heavy duty transports with loads being carried one way and empty
return trips, for instance when hauling timber or in construction
and bulk cargo operations.
Volvo Trucks also continued to improve productivity within con-
struction by releasing another five new features, including Volvo
Dynamic Steering for dual front axles and increased front axle
loads. This further highlights Volvo Trucks’ special attention to the
construction segment.
GROUP PERFORMANCE BOARD OF DIRECTORS’ REPORT 2015 TRUCKS
NAULT
8989