Scania’s earnings for the first quarter of 2013 amounted to SEK 1,933 m. The stronger Swedish krona and price pressure on trucks pulled down earnings. Higher truck volume and higher capacity utilisation in Latin America had some positive effect.
Summary of the first three months of 2013
- Operating income fell to SEK 1,933 m. (2,323), and earnings per share fell to SEK 1.75 (2.24)
- Net sales fell by 4 percent to SEK 19,341 m. (20,127)
- Cash flow amounted to SEK 4 m. (1,763) in Vehicles and Services
Comments by Martin Lundstedt, President and CEO
“Scania’s earnings for the first quarter of 2013 amounted to SEK 1,933 m. The stronger Swedish krona and price pressure on trucks pulled down earnings. Higher truck volume and higher capacity utilisation in Latin America had some positive effect. Order bookings for trucks remained at the same level as the end of last year while they increased significantly compared to the first quarter of 2012. Order bookings in Europe improved compared to the previous quarter. There is a replacement need, given the low truck deliveries in recent years. Scania is well-positioned ahead of the transition to Euro 6 emission standards and has launched the Scania Streamline truck with improved fuel economy, featuring second generation Euro 6 engines. Order bookings in Latin America remained at a high level. Demand in Brazil and Argentina is supported by subsidies. In both Europe and Brazil, Scania’s performance has been stronger than the overall market in recent quarters. In Russia, order bookings were at a good level and in the Middle East order bookings improved from a low level. Order bookings for buses and coaches rose significantly. Scania was awarded large orders in Russia and Asia. In engines, order bookings increased compared to the end of last year, especially in Europe. In local currencies, service sales increased somewhat in most regions during the quarter. Lower economic activity continued to adversely impact service demand in southern Europe. The stronger Swedish krona and price pressure on vehicles are increasing the focus on efficiency. European production was adjusted during the first quarter and a general review of projects and costs was conducted. In the longer term, there are good growth opportunities. Scania will therefore continue to prioritise investments in core development projects and will extend technical production capacity, as well as expanding the sales and services organisation in emerging markets.”
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