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SCANIA INTERIM REPORT JANUARY - JUNE 1997

Results in brief:

Second quarter, compared to first quarter of 1997

Number of trucks and buses sold: 12,274 (10,159)

Sales: SEK 10,137 m. (8,804) [USD 1,315 m. (1,142)]1)

Operating income: SEK 781 m. (642) [USD 101 m. (83) ], equivalent to a margin of 7.7 (7.3) percent. 

First half of 1997, compared to first half of 1996

Number of trucks and buses sold: 22,433 (23,012)

Sales: SEK 18,941 m. (17,376) [USD 2,457 m. (2,254)]1)

Operating income: SEK 1,423 m. (2,293) [USD 185 m. (297)], equivalent to a margin of 7.5 (13.2) percent.

Income after financial items: SEK 1,348 m. (2,102) [USD 175 m. (273)]

Net income: SEK 1,001 m. (1,512) [USD 130 m. (196)].

Earnings per share: SEK 5.00 (7.55) [USD 0.65 (1.00)].

Earnings per share according to U.S. GAAP: SEK 6.30 (7.50) [USD 0.80 (0.95)]. 

The market in brief:

Second quarter, compared to first quarter

Order bookings for heavy trucks from western European markets rose by about 10 percent.

In Latin America, truck deliveries rose by more than 20 percent. 

First half of 1997, compared to first half of 1996

Order bookings for heavy trucks from western European markets rose by 8 percent.

Scania’s market share for heavy trucks in western Europe was 15.4 (16.1) percent.

In Latin America, truck deliveries rose by 40 percent. Scania’s market share in Brazil was 41.5 (37.5) percent. 

Comment by Leif Östling, President and CEO:

"Scania’s six-month results are characterised by low sales volumes and continued pressure on prices in Europe. The upturn in demand for heavy trucks that began late in the first quarter strengthened during the second quarter. The higher order bookings will not have an impact on sales until the second half of 1997. A market upturn now seems to be occurring. In my experience, higher demand gradually leads to more stable prices. This is now also evident in Latin America where the price and volume trends have been positive."

1 Translated solely for the convenience of the reader at an exchange rate of SEK 7.71 = USD 1.00.

Lars Christiansson, Communications and Public Affairs

Tel +46 8 5538 1212, mobiletel +46 70 590 50 80

Thomas Skoglund, " "

Tel +46 8 5538 1258, mobiletel +46 70 556 07 97

Magnus Hahn, " "

Tel +46 8 5538 3510, mobiletel +46 70 551 79 03

Cecilia Andersson, Investor Relations

Tel +46 8 5538 3557, mobiletel +46 70 588 35 57