Scania reported an operating profit of SEK 506 m. during the first quarter. Falling vehicle deliveries and substantially lower capacity utilisation pulled down earnings.
- Operating income fell to SEK 506 m. (3,604)
- Net sales decreased by 28 percent to SEK 15,859 m. (21,991)
- Earnings per share fell to SEK 0.22 (3.14)
- Cash flow amounted to SEK 874 m. (1,686) in Vehicles and Services
- At present, Scania foresees no change in the demand for vehicles in the coming quarters
Comments by Leif Östling, President and CEO
“Scania reported an operating profit of SEK 506 m. during the first quarter. Falling vehicle deliveries and substantially lower capacity utilisation pulled down earnings. Service volume also declined somewhat from a high level. Scania’s earnings were affected to only a minor extent by the weaker Swedish krona due to currency hedges. Practically all markets where Scania has operations are characterised by low economic activity due to the turbulence in the financial markets and its impact on the real economy. In most European markets, the truck population has a relati vely low average age, and many transport companies have low utilisation of their vehicle fleets, which is sharply slowing investments in new vehicles. The transport equipment industry is characterised by high ly cyclical demand over a 10-year period, and we are now in the downturn phase. The Scania Group has taken a number of steps to adjust its cost level and to strengthen cash flow. Most of the 2,000 production employees with fixed term temporary contracts have left the company, a reduction to 10,000 employees in the production units and working hours have been reduced to mainly daytime shifts. Scania has postponed various investments, mainly in production, and has carried out a reduction in the number of outside consultants. Aside from adjusting to the business cycle, Scania is prioritising measures that will lead to a more efficient structure. Training programmes for production employees began during the quarter. This will strengthen the potential for profitable growth when the demand for transport equipment normalises. At present, Scania foresees no change in the demand for vehicles in the coming quarters”
For further information please see the attached Interim Report.
For more information please see attached pdf.
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