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Scania Year-end Report January-December 2009

Despite the 41 percent downturn in deliveries and the sizeable increase in credit losses in customer finance, Scania reported positive operating income of SEK 2,473 m.

Summary

  • Operating income fell to SEK 2,473 m. (12,512) and earnings per share fell to SEK 1.41 (11.11)
  • Net sales decreased by 30 percent to SEK 62,074 m. (88,977)
  • Cash flow amounted to SEK 5,512 m. (1,774) in Vehicles and Services
  • The Board of Directors proposes a dividend of SEK 1.00 (2.50) per share

Comments by Leif Östling, President and CEO

“Despite the 41 percent downturn in deliveries and the sizeable increase in credit losses in customer finance, Scania reported positive operating income of SEK 2,473 m. for the full year, due to more stable service revenue and the cost reductions that were carried out. A total of 3,900 employees have left the Group since September 2008, and the largest cutbacks have been implemented at production units. The Group introduced reduced working hours in a number of European countries. Cash flow in Vehicles and Services was favourably affected by a decrease in working capital and totalled SEK 5,512 m. Together with the reduced Financial Services portfolio, this lowered the Group’s net debt by SEK 10.3 billion. Scania launched several new products during 2009. 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 and it was awarded the prestigious “International Truck of the Year” trophy. 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. In the Engines business area, Scania’s new generation of engines has laid the groundwork for an agreement on engine deliveries to Terex, a leading US-based manufacturer of construction and industrial equipment. The agreement is a key element in Scania’s strategy of increasing its sales to original equipment manufacturers (OEMs). In the truck market the fall in demand has flattened out at a low level, and Scania is continuing to adjust its capacity, costs and capital spending. Given its strengt hened product portfolio, together with large-scale cost savings and investments in employee training, Scan ia is well positioned for profitability and growth

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