The Volvo Group announced net sales were down 38 percent at $8.14 billion, or 3.2 billion Swedish Krona, for the second quarter of 2020. For Volvo Penta, net sales were $277.9 million (SEK 2.5 billion) — 32 percent lower than the second quarter of 2019 — something the company attributed to decreased demand in the marine leisure segment.
“Measures adopted by countries to control the spread had a significant impact on our production and supply chain as well as on demand for our products and services,” said Volvo Group president and CEO Martin Lundstedt in a statement.
The Group was coming off a successful 2019, when it reported an 11 percent gain in net sales, and was off to a solid start in 2020. However, Covid-19 forced a variety of issues for the second quarter.
“After having been standing still in April, production was gradually restarted in May and is currently running well...,” said Lundstedt. “We also took forceful actions to reduce activities and costs, including salary reductions, temporary layoffs as part of governmental programs and a reduction of purchased services.”
The report says travel restrictions and lockdowns — as well as shuttered boatbuilding facilities — impacted sales of recreational yachts. The global marine commercial market, where the company cited “positive trends” in Asian sectors, partially helped offset declines.
Lundstedt is confident that the Swedish conglomerate has positioned itself well for the future.
“By securing our current performance, we will be able to take the lead in the transformation into sustainable transport and infrastructure solutions for the future,” he said.