Volvo Penta continues to increase sales and profit

Volvo Penta posted an increase in net sales and operating income for full-year 2002, according to the Volvo Group’s year-end report released today.

Net sales in full-year 2002 rose 4 percent compared with the preceding year. Volvo Penta’s sales by business segments are as follows (SEK M):

 

 

2001  2002  Change
Marine Leisure 4,463  4,713  +5%
Marine Commercial 866  956  +10%
Industrial 2,051  2,000  -2%
Total 7,380  7,669  +4%

Demand for Volvo Penta products remained strong during 2002. New products launched in recent years, such as KAD300 and D2-55 within Marine Leisure, have captured market shares, contributing greatly to Volvo Penta’s ability to increase its sales despite the continuing decline in the global markets for marine engines and industrial engines.

“We have continued to increase our market shares in all business segments, which shows that our new products create genuine added value for our customers. We are very proud of this. The pace of our product renewal will stay high even in the future,” says Volvo Penta’s President Staffan Jufors.

Volvo Penta’s operating income for full-year 2002 amounted to SEK 647 M, surpassing 2001 on comparable basis which, at that time, was considered a record high in Volvo Penta’s history. Cash flow was very strong during the past year. Operating margin amounted to 8.4% percent, despite the adverse exchange-rate impact on operating income.

Order bookings for engines and drive systems within the leisure-boat industry remained stable during the fourth quarter of 2002 while order bookings within marine commercial traffic rose.

Jennifer Humphrey
Global Communication Manager
+46 31 323305
Email: jennifer [dot] humphrey [at] volvo [dot] com