Scania reports strong first quarter
By IBI Magazine
Swedish truck and bus manufacturer Scania has revealed that its net sales in the first three months of 2008 grew by 15 per cent over the same time last year to SEK 21.9 million. Net income for the period rose by 21 per cent to SEK 2.5 million and the operating margin jumped to 16.4 per cent. The rise was mostly due to higher vehicle and service volume and increased prices, says the company.
Order bookings fell by 27 per cent to 20,226 units compared to the first quarter of last year, which was exceptionally strong, but the company's order book is expanding somewhat, since order bookings are still higher than deliveries. "Delivery times are currently 9-12 months, compared to a normal situation of 3-4 months. This, in combination with uncertainty about economic developments, is causing customers in Europe to hold off on submitting orders," says Scania president and CEO Leif Östling. "Demand remains strong in Russia and other CIS countries, Latin America and the Middle East."
"Our plan remains to increase production to an annual rate of 90,000 vehicles by year-end 2008 and to have an installed technical capacity of 100,000 vehicles by the end of 2009," he adds. "Meanwhile our flexibility in production is increasing and we are well prepared for a continued volume upturn but also for possible lower demand."
In the industrial and marine engine segment, order bookings grew by 22 per cent to 2,391 units, while deliveries rose by 18 per cent to 1,582 units. This resulted in a 24 per cent increase in net sales to SEK 276 million in the first quarter. The growth was mainly related to gensets, due to electricity supply shortages in Brazil and South Africa.
For Scania's full first-quarter results, visit the company website at www.scania.com.
(29 April 2008)
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