Sales and deliveries up for marine engine producer
Sweden’s Volvo Group, which includes engine manufacturer Volvo Penta, has reported good growth for the third quarter of 2018. Net sales for the group were SEK 92.3 billion, an increase by 21%, and an adjusted operating income of SEK 10,247 M (6,937).
Volvo Penta shows an operating income of SEK 630 M (353), with an operating margin of 19.6% (13.3). In the report the company writes: “The marine leisure market shows positive signs and Volvo Penta continues to grow in new customer segments, such as large yachts. The marine commercial market shows positive development in several sub-segments, such as offshore energy in Asia. There is increased customer interest for hybrid and electrified solutions, particularly within the people transportation and offshore energy segments.”
Net orders for Volvo Penta in Q3 2018 increased by 8% to 9,437 units and deliveries increased by 8% to 10,155 units. Net sales increased by 20% to SEK 3.207 M (2.662).
Adjusted for currency movements, net sales increased by 12%, of which sales of engines increased by 13% and sales of services increased by 11%. In Q3 2018, both adjusted and reported operating income amounted to SEK 630 M (353). The operating margin was 19.6% (13.3). Earnings were positively impacted by higher volumes, positive product mix and currency. Compared with Q3 2017, the currency impact on operating income was positive in an amount of SEK 52 M.
During Q3, Volvo Penta revealed new easy boating features that deliver increased onboard comfort and control for boat owners.