GOTEBORG, Sweden – Volvo Penta’s total sales during the second quarter of 2009 totaled SEK 2,258 M, compared to SEK 3,325 M in the year-prior period, registering a 41-percent decline in sales and an operating loss of SEK 165 M of 7.3 percent, the company reported in a recent statement.
The losses were attributable, the company stated, to the decline in sales volume, credit losses, under-absorption of costs in production and costs pertaining to layoffs.
“Global demand for marine engines continued to weaken during the second quarter,” the report said. “In North America, demand for marine engines is at a historically low level, and the industry has been hit hard by bankruptcies and financing problems. The situation is similar in Europe, where many boat builders have been forced to close their plants entirely for extended periods of time.”
The marine division of Volvo Penta accounted for SEK 1,407 M in sales, a 37-percent decline compared to the same period of last year. However, the company said that although its industrial engines business, too, saw a sharp decline in sales, that market is “still somewhat more stable” than marine engines.
New products on the horizon
In the report, Volvo Penta suggested it will be launching a “large number of new products, primarily for leisure boats,” in the forthcoming third quarter.
“These new products will include a broadening of the popular joystick function, which, as of the autumn, will be available for use in boats with Aquamatic drive — both diesel and gasoline engines,” the report said. “Volvo Penta will also launch in board versions of the Group’s D13 engine with an output of 800 and 900 hp. In addition, Volvo Penta will also introduce a brand new 220-hp D3 leisure engine based on Volvo Cars’ new, technically advanced diesel engines which boast unique environmental features and performance.”