Scania Interim Report January – September 2010

Scania Interim Report January – September 2010

Scania’s operating income during the first nine m onths of 2010 rose to SEK 9,021 m. Higher vehicle deliveries and significantly increased capacity utilis ation mainly explain the improvement.

Summary

  • Operating income rose to SEK 9,021 m. (1,042), and earnings per share rose to SEK 7.63 (0.38)
  • Net sales increased by 27 percent to SEK 55,663 m. (43,714)
  • Cash flow amounted to SEK 8,388 m. (3,017) in Vehicles and Services

Comments by Leif Östling, President and CEO

“Scania’s operating income during the first nine m onths of 2010 rose to SEK 9,021 m. Higher vehicle deliveries and significantly increased capacity utilis ation mainly explain the improvement. The first nine months of 2009 were characterised by low capacity utilisation and by negative effects from currency hedging. Demand in markets outside Europe is generally at a good level. The Brazilian truck market is strong as an effect of high economic activity, and de mand is also benefiting from tax breaks and interest rate subsidies. Scania has taken advantage of t he Group’s common global product range and production structure, which has enabled the company to m eet the strong demand in Latin America. Demand throughout Europe, including Russia, improved during the period from a very low level last year. The daily production rate has increased continuously during the period and Scania has focused on maintaining short delivery times. The increase in the production rate has meant that the risk of bottlenecks has increased among both sub-contractors and bodybuilding companies. Scania has hired production employees during the period, and to ensure flexibility these employees have been hired on temporary contracts. Activity in the transport business has increased, contributing to gr eater demand for service. Aside from Latin America and Asia, which noted good service demand throughout the per iod, volume also rose more substantially in Europe during the third quarter.”

For more information please see attached pdf.