Scania’s earnings for the first quarter amounted to SEK 2,323 m. Lower vehicle deliveries and lower capacity utilisation pulled down earnings, as did higher costs for future-related projects.
Summary of the first three months of 2012
- Operating income fell to SEK 2,323 m. (3,339), and earnings per share fell to SEK 2.24 (3.14)
- Net sales decreased by 3 percent to SEK 20,127 m. (20,692)
- Cash flow amounted to SEK 1,763 m. (1,129) in Vehicles and Services
Comments by Leif Östling, President and CEO
“Scania’s earnings for the first quarter amounted to SEK 2,323 m. Lower vehicle deliveries and lower capacity utilisation pulled down earnings, as did higher costs for future-re lated projects. A more favourable market mix h ad a positive effect, as deliveries in Brazil were supported by some 2,000 Euro 3- vehicles during the first quarter. Total deliveries fell due to a deceleration in demand in late 2011. Scania has adjusted its production rate to the current level of demand. Overall order bookings for trucks during the first quarter of 2012 were in line with the end of last year. The market in southern Europe is still at a low level. Order bookings in Latin America were adversely affected during the quarter by the transition to Euro 5- vehicles in Brazil. In Eurasia, demand remains at a good level. Order bookings in the Middle East were still at a low level and the outlook is uncertain. Elsewhere in Asia, an increasing interest in Scania’s high quality products and services is discernible. Among other things, Scania secured large orders from machinery equipment manufacturers. Order bookings for buses and coaches weakened overall during the first quarter compared to the end of 2011, mainly attributable to Europe. Engines noted higher order bookings, mainly driven by Europe. Demand for service is generally at a high level, with growth being driven by Latin America. High European truck deliveries during 2005-2008 followed by low truck deliveries in recent years means that the average age of the truck population is increasing. This higher average age is impacting the demand for workshop hours and parts positively and also means that customers have a growing need for replacements. Scania is well-positioned in the market through its latest service and product releases.”
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