Skip to main content

Volvo Penta sees sales dip, profit boost

Engine manufacturer Volvo Penta reported a decrease in sales for the third quarter, but overall saw an increase in profits because of cost reductions.

"Volvo Penta has also been impacted by a continued weak market, with a slightly more stable trend in industrial engines than in marine engines. In spite of the 32 percent decline in sales adjusted for currency, Volvo Penta reported a profit for the quarter as an effect of cost reductions," the company said in a statement.

In its report, the company cited a weak demand for marine engines but a more stable environment for industrial engines. It also touted increased market share for Volvo Penta IPS, the manufacturer's pod drive propulsion system.

"Although the third quarter remained, as expected, challenging in terms of profitability, there are some positive signs indicating that the decline in demand has bottomed out and that we are now beginning a gradual recovery," CEO Leif Johansson said in a statement.

"These signs are the most obvious in the group's second largest region in terms of sales, Asia, where the economic growth is also reflected in demand for the Group's products," he added.

The third quarter operating loss was significantly reduced compared to the second quarter as a result of cost-cutting measures. The operating loss amounted to SEK 3,286 M ($484,048) compared to an operating loss of SEK 6,883 M ($1.01 million) in the second quarter of 2009. In the third quarter of 2008 the operating income was SEK 3,177 M ($468,033).

Related

1_PULSE1

Inflation Stymies Boat Sales

Inventories of new and used boats are improving at the retail level but are still considered comparatively lean, according to the results of the monthly Pulse Report survey.

Norm

Ho, Ho, Ho, You Better Watch Out

It may be too early to decorate the showroom, but it’s not too early to hatch a marketing plan to profit from the holiday selling season.

IBEX

Industry reacts to IBEX cancelation

With Ian expected to hit Florida’s west coast as a major hurricane, the consensus among those who spoke with Trade Only Today say it was the correct decision.

1_ABYCELECTRIFICATION

Ready for a Revolution

Electrification has been an increasingly common buzzword in the marine industry, especially in the past four to five years.

1_MARINEMAX.BOD

MarineMax Makes Appointment to its Board

Mercedes Romero has expertise in global procurement and strategic planning, working with such companies as Procter & Gamble and Starbucks.

1_ PULSE.PING.1

DEALERS: Are Interest Rates Impacting Demand?

This month’s Pulse Report survey asks dealers whether interest rate increases are causing a downturn in boat sales. Take the survey here.

1_SPOTZERO

Spot Zero Announces Expansion

The Fort Lauderdale-based reverse osmosis systems manufacturer is adding a 20,000-square-foot production facility.

1_Seakeeper Ride 450_2023 Sportsman Open 232 Center Console

Seakeeper’s New System Targets Pitch

Seakeepeer, whose gyroscopic stabilizers set the marine industry standard for eliminating as much as 95 percent of a boat’s roll, is now turning its attention to eliminating pitch with their Seakeeper Ride system.

7_IMG_0254

Propeller Precision

Yamaha’s new $20 million foundry produces about 100,000 propellers a year