Volvo Buses
Global
The bus market is recovering slowly in general, with the exception of city buses in Europe and North America, where demand is roughly flat. During the first five months of the year, the total market in Europe rose 3%.
The North American coach market has improved slightly, while procurements of city buses are few. In Mexico, activity for both coaches and city buses increased somewhat. The trend in the bus market in South America remains favorable, due in part to the effect of the advance purchase of coaches prior to the introduction of Euro 5 on January 1, 2012.
The trend in the total market in Asia and Africa remained positive. However, the Chinese bus market has slowed down, particularly in Shanghai where large purchases were previously made for the World Expo 2010. Globally, interest in hybrid buses and cleaner buses is widespread.
Increased deliveries
Deliveries during the second quarter of 2011 amounted to 3,127 buses, compared with 2,297 in the same quarter of 2010, up 36%.Deliveries increased in almost all markets. The order intake for the second quarter was in line with the year-earlier period and amounted to 3,124 buses (3,081). South America accounted for the largest increase, almost doubling its order intake.
One of the orders signed during the second quarter was for 60 hybrid buses in Curitiba in Brazil – the first order for hybrid buses outside Europe. An additional order of 328 Nova articulated buses for public transport in New York City was signed.
Higher sales
Net sales in the second quarter rose 6% to SEK 5,593 M (5,253). Adjusted for exchange-rate fluctuations, net sales increased 19%.
Operating income for the second quarter of 2011 amounted to SEK 275 M (259). Earnings in the Asia Pacific region had a favorable trend, while profitability in Europe weakened as a result of weak demand and stiff competition. The operating margin was 4.9% (4.9).
Continued cost program and capacity increases
The slow recovery in the bus markets in Europe and North America entails a continued focus on capital efficiency, the ongoing costs program and activities to generate profitable growth. Due to the higher order intake, production is being increased in the U.S., Mexico, India and Brazil.
In order to be able to meet increasing demand in the segment for front engine buses, which in Brazil amounts to 10,000-12,000 buses per year, a new front engine bus has been launched. The new bus received a very positive response at the introduction.
Interest in hybrid buses is now growing markedly on a global scale and has prompted Volvo Buses to also commence the manufacture of hybrid buses at the plant in Curitiba.
| Net sales by market area | Second quarter |
| First six months |
| ||
| SEK M | 2011 | 2010 | Change in % | 2011 | 2010 | Change in % |
| Europe | 1,742 | 1,864 | (7) | 3,162 | 3,322 | (5) |
| North America | 1,855 | 1,725 | 8 | 3,512 | 3,762 | (7) |
| South America | 595 | 327 | 82 | 946 | 723 | 31 |
| Asia | 716 | 664 | 8 | 1,623 | 1,577 | 3 |
| Other markets | 685 | 673 | 2 | 1,209 | 936 | 29 |
| Total | 5,593 | 5,253 | 6 | 10,452 | 10,320 | 1 |
For further information, please contact Per-Martin Johansson, press officer, +46 31 322 52 00.