- Continued weak demand
- Preparations for new product introductions
- Favorable market and product mix
The total demand for leisure boats seems to have bottomed out on low levels. Cutbacks and rationalizations continue in the boat industry. Volvo Penta has defended, and in some cases increased, its market share. The new “Glass Cockpit” solution has been very well received. There is an increased activity from low levels in Marine Commercial. The slowdown in China as well as the depressed economy in Southern Europe had a negative impact on sales in the Industrial Segment. The volume in the total order book at March 31, 2014 was 4,376 units (5,811).
Net sales in the first quarter of 2014 decreased by 2% compared to last year and amounted to SEK 1,804 M (1,839). Adjusted for exchange-rate fluctuations, net sales decreased by 2%. Sales in the first quarter were distributed between business segments as follows: Marine SEK 1,022 M (1,041) and Industrial SEK 782 M (798). Operating income amounted to SEK 151 M (100). Earnings were positively impacted by a favorable market and product mix. The operating margin was 8.4% (5.4). Compared with the first quarter of 2013, operating income was positively impacted by changes in currency exchange rates in an amount of SEK 9 M.