Volvo Considers Selling Penta Engine Unit

Friday, May 18, 2001
Volvo recently made it known to investment banks that all or part of its profitable Penta marine and industrial engine unit would be up for sale at the right price, Reuters reported. Analysts said Volvo probably would require a high offer for Penta, one of its smaller but more profitable units, and would sell only if it needed the cash to fund a tempting acquisition in its core business in trucks, buses and industrial equipment. "It comes as a surprise to me. They normally argue that it has a lot of synergies, not least with the truck area when it comes to engine knowledge," Danske Securites analyst Mikael Sens said. But Penta's strong recent financial performance could justify an expensive price tag, he noted, and that cash would be useful if Volvo had a large acquisition in the pipeline. "That would be the only good argument. The price could perhaps be favorable. If they plan to make another big acquisition in some other area, perhaps they could start to pile up some cash," Sens said. Volvo declined to comment. Volvo Penta makes engines for leisure boats, work boats, power generating equipment and other machines, including forklifts. Its products are sold in 120 countries. Penta had its best year ever in 2000, with sales jumping 14.5 percent to 6.6 billion Swedish crowns ($642.8 million) and operating profit of 484 million crowns, a margin of 7.3 percent. The unit contributed five percent of Volvo Group's sales in 2000, but almost eight percent of its operating income. - (Reuters)
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Boskalis Consortium Wins Suez Canal Expansion Contract

A consortium consisting of Royal Boskalis Westminster N.V. (Boskalis), Van Oord, NMDC (Abu Dhabi) and Jan de Nul (Belgium) has acquired a contract from the Suez

GTT Receives Order from HHI for Two LNGCs

Gaztransport & Technigaz (GTT), a designer of membrane containment systems for the maritime transportation and storage of liquefied natural gas (LNG) confirmed

Maersk Supply Service Orders Six Anchor Handlers

Kleven Maritime A/S has been contracted by Maersk Supply Service to build six anchor handling tug supply vessels, with options for four additional newbuilds. The vessels,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Pipelines Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0922 sec (11 req/sec)