Summary of the first nine months of 2012
Scania’s earnings for the first nine months of 2012 amounted to SEK 6,135 m. Lower vehicle volume, lower capacity utilisation and a higher level of costs pulled down earnings.
- Operating income fell to SEK 6,135 m. (9,657), and earnings per share fell to SEK 5.94 (9.11)
- Net sales decreased by 12 percent to SEK 57,261 m. (64,795)
- Cash flow amounted to SEK 2,176 m (3,866) in Vehicles and Services
Comments by Martin Lundstedt, President and CEO
“Scania’s earnings for the first nine months of 2012 amounted to SEK 6,135 m. Lower vehicle volume, lower capacity utilisation and a higher level of costs pulled down earnings. Order bookings for trucks during the third quarter of 2012 decreased compared to the previous quarter. In Europe, the first part of the third quarter is usually characterised by low activity. However, order bookings in September continued at the same low level in many markets, affected by lower economic activity and hesitancy among customers to invest in new vehicles. This is despite a growing replacement need in Europe, given the low truck deliveries in recent years. In Brazil, the market has been at a lower level compared to the previous year due to the transition to Euro 5 and a weaker economy.
However, extensive subsidies had a positive effect on order bookings for trucks at the end of the quarter. In Russia, demand is at a good level. In Asia, order bookings were lower than the previous quarters, mainly attributable to a major order in China during the first half of 2012 and a downturn in the Middle East during the third quarter. The outlook in the Middle East is uncertain. Order bookings for buses remained at a low level. Engines noted weaker order bookings in all regions during the second quarter and the trend continued in the third quarter. Service demand is generally at a stable level. However, in Europe, service demand is decreasing, which is partly offset by the ageing vehicle population. The short-term outlook is very difficult to judge and imposes stricter demands for volume flexibility and cost control. The strengthening of the Swedish krona is having a negative impact, as a large proportion of Scania’s cost base is in Sweden. In the longer term, Scania believes there are good growth opportunities. Investments in development projects and expansion of technical production capacity for vehicles continue, along with the expansion of the sales and service organisation in emerging markets.”
For more information please see attached pdf.