Scania’s earnings for the first nine months of 2011 amounted to SEK 9,657 m. Higher vehicle and service volume was offset by a significantly stronger Swedish krona, a higher cost level and an altered market mix.
Summary of the first nine months of 2011
- Operating income rose to SEK 9,657 m. (9,021), and earnings per share rose to SEK 9.11 (7.63)
- Net sales increased by 16 percent to SEK 64,795 m. (55,663)
- Cash flow amounted to SEK 3,866 m. (8,388) in Vehicles and Services
Comments by Leif Östling, President and CEO
“Scania’s earnings for the first nine months of 2011 amounted to SEK 9,657 m. Higher vehicle and service volume was offset by a significantly stronger Swedish krona, a higher cost level and an altered market mix. Deliveries have generally held up at a satisfactory level during the period, especially in the markets in Latin America, the Middle East, Russia and northern Europe. However, demand for vehicles decelerated towa rds the end of the period, primarily in southern Europe but also in the Middle East. Customers have become hesitant about placing orders, mainly due to expectations of lower economic activity. Since Scania works with short delivery times, the daily production rate will be reduced by between 10 and 15 percent on a global basis starting in Novem ber. A swift adjustment to demand reduces the risk of building up inventories. The reduction will mainly occur by not extending about 900 fixed term temporary contracts in Europe. In light of the uncertain economic situation, Scania is prepared to take measures if demand is further adversely affected. However, there is a need to replace vehicles in the European market since the relatively low level of truck deliveries during 2009 and 2010 means that the average age of the vehicle population is relatively high. In Brazil, there is uncertainty regarding demand during the first half of 2012 due to the introduction of the Euro 5 emission standards. There is a high level of demand for service in all regions and Scania is continuing its efforts to extend and improve the efficiency of the service network.”
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