A good first quarter 2021 for Volvo Penta
Engine maker Volvo Penta, the industrial and marine arm of the Volvo Group, and a leader in the recreational marine sector, has reported its interim results for the first quarter of 2021, ended March 31. The Swedish marine engine specialist posted rising figures. Revenues increased by 2% to SEK 3,409 million, or EUR 336 million. Growth was particularly strong in South America and was present in all markets except North America, which declined slightly by 4%. Sales of services increased by 11%, while revenues from engines stagnated (-1%). The operating margin was 18.9% compared with 15.2% in 2020.
Discrepancy between engine sales and deliveries
Volvo Penta saw strong demand for engines in the first quarter, particularly in the recreational sector. Orders were up 27% to 14,508 engines in the first quarter, including four fully electric engines. The increase in deliveries was much less marked, at 7% for 10,623 units delivered. The gap between orders and deliveries could prove critical for future deliveries to boaters and OEMs. In its report, Volvo Penta confirms that "the marine and industrial sectors are affected by supply chain disruptions that delay production increases and result in longer delivery times to the customer."
