Operating income for the first quarter of 2011 rose to SEK 3,339 m (2,130). Higher vehicle and service volume and higher capacity utilisation explain the improvements compared to the first quarter of last year.
- Operating income rose to SEK 3,339 m. (2,130), and earnings per share rose to SEK 3.14 (1.78)
- Net sales increased by 25 percent to SEK 20,692 m. (16,503)
- Cash flow amounted to SEK 1,129 m. (2,366) in Vehicles and Services
Comments by Leif Östling, President and CEO
“Operating income for the first quarter of 2011 rose to SEK 3,339 m. Higher vehicle and service volume and higher capacity utilisation explain the improvemen ts compared to the first quarter of last year. Compared to the fourth quarter of 2010, the negative effects of the stronger Swedish krona (SEK) were more pronounced. Order bookings in Europe were relatively strong at the end of 2010, when many hauliers carried out replacement in vestments. The first quarter was characterised by somewhat lower activity. The Brazilian market is benefiting from high ec onomic activity, but the first quarter was adversely impacted by the transition period to the government’s reconfigured financing programme including interest rate subsidies − which went into effect in April − resulting in postponed orders and deliveries in Brazil. Together with increased deliveries to markets outside Europe, this led to higher inventory levels during the quarter. The Russian truck market, which showed a st rong recovery during the fourth quarter of 2010, stabilised at a high level. Demand is good in Midd le Eastern markets and elsewhere in Asia. The demand for buses and coaches is high in Latin American and As ian markets, while growth is weak in a number of European markets. Order bookings for engines contin ued to improve, especially in Europe. The demand for service was at a high level in all regions during t he first quarter. The production rate levelled out during the first quarter of 2011, compared to the second half of 2010. Scania is prioritising short and reliable delivery times, thereby limiting its order book. Scania is continuing to st rengthen its product portfolio and in the first quarter the company unveiled trucks with Euro 6-compliant engines. The Euro 6 emission standards go into effect in the European Union at the end of 2013. During the firs t quarter, too, there were some disruptions at the sub-contra ctor level. These disruptions have not been related to the tragedy in Japan, however, the full impact of that series of events remains to be assessed.
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