CHESAPEAKE, Va. – Volvo Group, parent company to Volvo Penta, announced recently that its engines and recreational power systems division realized a record second quarter operating margin.
The operating margin, of 13.8 percent was Volvo Penta’s highest-ever, as profits for the second quarter were up 19 percent compared to the same period last year.
While the company’s overall sales increased 10 percent for the second quarter and 8 percent for the first six months, it’s North American sales did not fare as well. Sales there dipped 11 percent for the first six months and 13 percent for the second quarter.
“In total, the Group sold products and services for slightly more than SEK 71 billion,” said Leif Johansson, President and CEO of The Volvo Group. “We delivered an operating income of more than SEK 6 billion with an operating margin of 8.6 percent and a good cash flow, despite the down-turn in North America and an unfavorable exchange rate development. The trend in Asia and Eastern Europe is particularly favorable, and these are important markets in which we are continuously strengthening our position and building out our distribution network to provide our customers with even better service. We have managed the down-turn in North America well and the underlying profitability of the Group is strong.”
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