Volvo Aero´s commercial component business continues to grow
During the second quarter, Volvo Aero’s sales amounted to SEK 1 845 M, which was 5% lower than in the corresponding period the preceding year. Adjusted for changes in exchange rates, sales increased by 4%.
The operational activities in Bromma were finalized at the end of June, when the last engine was delivered. During the second quarter, VAES´ sales amounted to SEK 93 M, compared with SEK 230 M during the same quarter 2006.
As a result of new orders and increased air traffic, the commercial component business, including manufacturing of new spare parts, continued to grow.
Operating income amounted to SEK 93 M (153) and the operating margin to 5.0% (7.8). The weaker income is primarily attributable to costs for the closure of the Bromma plant. Earnings and the margin were also affected by an unfavourable currency trend.
During the first six months of the year, Volvo Aero reported sales of SEK 3,712 M, compared with SEK 4,063 M for the corresponding period in the preceding year. Profit amounted to SEK 181 M, compared with SEK 358 M for the first six months of 2006. The operating margin for the period was 4.9% (8.8% in 2006).
General Electric’s new GEnx engine has passed one of the toughest tests an engine can be put through, the “Fan Blade Out Test (FBO)”. An important objective of the FBO test is to demonstrate that the aircraft engine, at full speed, can lose one of its fan blades without the engine becoming detached from the aircraft wing.
Volvo Aero is responsible for the design of the two components used to affix the GEnx engine to the aircraft wing. The FBO test is crucial in order to demonstrate the ability of the components to cope with maximum strain.
Aircraft order intake more than doubled
World airline passenger traffic increased 3% in April and 4% in the first four months of 2007. Europe had the strongest traffic growth year-to-date. It was followed by Asia-Pacific and the US.
IATA has raised its industry profit forecast for world airlines for this year and next due to improving market conditions.
Order bookings for large commercial jets continued to increase in the first six months of this year. The combined order intake for Airbus and Boeing totaled 1,229 aircraft through June, an increase of 101%, compared to the year-earlier-period (610).
Airbus and Boeing delivered 451 aircraft in the first six month of this year, up 9% compared with the year-earlier period. The backlog at the end of June reached 5,699 aircraft which corresponds to more than 12,000 engines.
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