Scania’s operating income totalled SEK 1,042 m. during the first nine months of 2009. Vehicle deliveries decreased by nearly 50 percent and were the main explanation for the earnings downturn.
- Operating income fell to SEK 1,042 m. (10,455) and earnings per share fell to SEK 0.38 (9.21)
- Net sales decreased by 34 percent to SEK 43,714 m. (66,319)
- Cash flow amounted to SEK 3,017 m. (3,638) in Vehicles and Services
Comments by Leif Östling, President and CEO
“Scania’s operating income totalled SEK 1,042 m. during the first nine months of 2009. Vehicle deliveries decreased by nearly 50 percent and were the main explanation for the earnings downturn. More stable service revenue limited the drop in earnings, volume decreased somewhat more than 10 percent. Currency hedgings more than offset the positive effect of the weaker Swedish krona. The Group’s earnings were favourably affected by the steps taken to lower the cost level. Cash flow was positive in Vehicles and Services and together with the reduced portfolio in Financial Services, the Group’s net debt decreased by SEK 7.7 billion including the dividend payment of SEK 2 billion. Scania launched two new products during the autumn. The new R-series, featuring better fuel economy and an improved driver environment, will ensure Scania’s leading position in the important long-haulage truck segment. The new coach model, the Scania Touring, is a major step in Scania’s strategy of increasing the degree of industrialisation and expanding its service range related to complete buses and coaches. The European truck market is characterised by low economic activity, but in Scania’s judgement the downturn in western European demand has now levelled off. In Latin America, demand remains relatively good. In Asia, a certain recovery is under way. The market for buses and coaches was generally more stable during the period. The market for engines has noted a sharp downturn. However, some recovery is occurring in the industrial engine segment. Scania is continuing its efforts to reduce costs and sustain cash flow. In June, the company introduced a four-day week for about 12,000 employees in Sweden, a saving of more than SEK 300 m. during 2009. Scania’s strengthened product portfolio together with the large-scale cost-saving measures and its investment in employee training have created good conditions for profitable growth when the market turns around.
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Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company’s operations consists of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 35,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2008, invoiced sales totalled SEK 89 billion and net income amounted to SEK 8.9 billion.