Good financial performance
- Market demand still weak
- Strengthened product portfolio
- Operating margin of 13.4%
The global demand for marine engines remained weak during the second quarter of 2013. Boat sales in North America and Europe were basically unchanged, but demand varied between the individual segments. For example, the sailboat segment in Europe is estimated to have declined by about 20% compared with the year-earlier period.
The global market for industrial engines weakened slightly compared with the preceding quarter, primarily due to lower demand for off-road engines, e.g. engines for cranes and material handling equipment in the Chinese market.New products
During the boat season this year, Volvo Penta launched new engines and instruments that will make boat life easier for end customers and facilitate continued development to more integrated and complete driver environments.
The new, ultra-modern product program for off-road industrial engines received positive reviews from customers and has strengthened Volvo Penta’s positions in the market and customer offering prior to the forthcoming emission legislation that will gain legal effect as of 2014.
The volume in Volvo Penta’s total order book as at June 30, 2013 was 10% higher than the year-earlier period.Seasonally good financial performance
Traditionally, the second quarter is the seasonally strongest quarter for Volvo Penta. Net sales for the second quarter of 2013 declined 3% to SEK 2,159 M (2,224), year-on-year. Adjusted for exchange-rate fluctuations, net sales rose 2%. Sales were distributed between both business segments as follows: Marine SEK 1,169 M (1,251) and Industrial SEK 990 M (973).
The operating income during the quarter amounted to SEK 290 M, compared with SEK 279 M in the year-earlier period. Volvo Penta’s operating income was positively impacted by SEK 81 M from non-recurring items in the second quarter of 2013. The operating margin was 13.4% (12.5).
Compared with the second quarter of 2012, operating income was negatively impacted by changes in currency exchange rates in an amount of SEK 33 M. Operating income in the second quarter of 2012 was positively affected by VAT credits in Brazil of SEK 69 M relating to previous years.