Volvo 2015 Annual Report Download - page 96

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NET SALES BY MARKET
SEK M 2015 2014
Europe 17,732 17,215
North America 11,843 10,784
South America 2,207 3,234
Asia 16,424 18,458
Other markets 2,802 3,164
Total 51,008 52,855
DELIVERIES BY MARKET
Number of machines 2015 2014
Europe 12,539 14,174
North America 5,710 7,127
South America 2,036 3,669
Asia 22,339 33,648
Other markets 2,094 2,699
Total deliveries 44,718 61,317
Of which:
Volvo 30,296 36,755
SDLG 14,267 24,445
Of which in China 11,311 19,964
Products and distribution
Volvo CE continued to strengthen its range throughout 2015, with
the launch of several important new products and services.
Among the new machines introduced were the DD25 and DD105
compactors, the EC18D compact excavator, the EW160E wheeled
excavator and the L90H wheel loader. Shipments also began in
July of G-Series wheel loaders that feature Z-bar linkages, mid-
sized wheel loaders that are tailored to the needs of markets such
as Middle East, Africa and Russia. It was no less busy at Terex
Trucks and SDLG, with both brands strengthening their global
distribution networks throughout 2015.
Adjusting the cost base
In a bid to adapt to lower volumes driven by the declining global
market a series of cost reducing measures were introduced dur-
ing 2015. Improved efficiency remained in focus, with the com-
pany completing the orderly shutdown of Volvo-branded grader,
backhoe and milling lines that was announced at the end of 2014.
This was joined by changes to sales and operations planning that
reduces the need for dealers to hold large inventories and cuts
delivery times to customers, thanks to a pre-build program for
popular machines. An accelerated internal efficiency program
was also initiated during 2015, focusing on industrial sites and
identifying improvement areas that offer the largest financial sav-
ings in the short term.
Product and market profitability in focus
Cost savings formed just part of a wider objective of transforming
Volvo CE in to a world class, high performing company. A new
governance structure was introduced that creates roadmaps that
help each product and market excel, while at the same time prior-
itizing resources. Total profitability was also in focus, with a new
sales approach allowing Volvo CE to successfully participate in
deals that may have seemed unattractive in the past. This policy
led to an additional 2,000 machines and a 1.8 percentage point
market share increase in the important large machine segment.
Net sales, SEK bn
1514131211
51.0
52.9 51.053.463.663.5
Operating income* and operating margin*
SEK M
%
2,090
14
1,231
2.3
15
2,090
4.1
13
2,592
4.9
12
5,667
8.9
11
6,812
10.7
*Excl. restructuring charges
GROUP PERFORMANCE BOARD OF DIRECTORS’ REPORT 2015 CONSTRUCTION EQUIPMENT
REACHING FURTHER
Lift higher and reach further with Volvo CE’s
purpose-built, high-lift L180H HL wheel
loader designed for log handling.
94