Volvo Penta sales up despite weaker marine market
GOTEBORG, Sweden – Despite what it called a “somewhat weaker market for marine engines,” Volvo Penta saw sales increase 9 percent in the fourth quarter, it reported in a statement earlier this month.
“The overall European market for marine engines continued to be strong during the fourth quarter, mainly due to strong demand for larger leisure boats from around 35 feet and up. In the U.S., on the other hand, a continuous weakening total market for marine engines was noted,” the company stated.
Part of the reason for its growth can be attributed to an increase in demand for industrial engines in Europe, the Far East and many other developing markets such as India and Turkey, according to Volvo Penta.
The group said it has continued to strengthen its market share on the marine side, not least on the market for gasoline-powered engines in the U.S. In the inboard segment, Volvo Penta has strengthened its position considerably, which it attributed to the development of the IPS drive system. During the fourth quarter, the number of IPS systems was 80-percent higher than during the corresponding period the preceding year, according to Volvo Penta.
During the fourth quarter, Volvo Penta’s sales amounted to SEK 2,859 M. Adjusted for exchange-rate differences, net sales increased by 10 percent. Sales among the business segments were: Marine Leisure SEK 1,773 M (1,609), Marine Commercial SEK 306 M (275) and Industrial SEK 780 M (718).
Operating income totaled SEK 177 M (227), according to the company. It was negatively affected by investments in future logistics and IT infrastructure. The operating margin amounted to 6.2 percent (8.7).
For the full year 2007, net sales increased 9 percent to SEK 11,719 M (10,774). Operating income rose 6 percent to SEK 1,173 M (1,106), and the operating margin was 10.0 percent (10.3).
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