Commercial component business continues to grow
During the third quarter, Volvo Aero’s sales amounted to SEK 1 847 M, which was 5% lower than in the corresponding period the preceding year, mainly due to currency and the Bromma  plant closure. Adjusted for currency effects and the discontinued Bromma operations, sales increased by 7%.
Operating income increased to SEK 148 M (143) and the operating margin to 8.0 % (7.4).  Despite higher material cost, the component business continued to show good profitability in the third quarter. In addition, the aftermarket business improved profitability, compared to the same period last year.

Volvo Aero’s light weight design has been chosen for the GP7000 engine for the Airbus A380
The GP7000 agreement with Pratt & Whitney is a major success for Volvo Aero’s technology efforts and a confirmation that the company is moving in the right direction with its focus on lightweight designs. Among other features, the new Volvo Aero design reduces the weight of the component by more than 10%, resulting in a substantial benefit in terms of fuel consumption and thereby reduced environmental impact.

Increasing backlog for larger aero engines
World airline passenger traffic increased by 4% in the first seven months of this year. Order bookings for large commercial jets continue to increase and the backlog at the end of September exceeded 6,000 aircraft, which represents over six years of production at current production rates. The backlog for the Boeing 787 program at the end of the September was 710 orders. The GEnx engine program, which is one of Volvo Aero’s most important future engine programs, has now accumulated more than 900 engines on the 787 and 747-8. The total engine order book increased to more than 12,600 large engines at the end of September.

For Volvo Aero, order bookings remain strong and at September 30 the value of the order book in the component business was 47% higher than at the same date in the preceding year.