Scania’s earnings for the full year amounted to SEK 12,398 m. Higher vehicle and service volume was offset by a significantly stronger Swedish krona, a higher cost level and a changed market mix.
Summary of the full year 2011
- Operating income fell to SEK 12,398 m. (12,746), and earnings per share rose to SEK 11.78 (11.38)
- Net sales increased by 12 percent to SEK 87,686 m. (78,168)
- The Board of Directors proposes a dividend of SEK 5.00 (5.00) per share
Comments by Leif Östling, President and CEO
“Scania’s earnings for the full year amounted to SEK 12,398 m. Higher vehicle and service volume was offset by a significantly stronger Swedish krona, a higher cost level and a changed market mix. Deliveries amounted to a record of 80,108 vehicles. Order bookings for trucks decelerated during the second half of 2011. Southern Europe had a lower level throughout the second half com- pared to the first half and northern Europe was somewhat weaker in the fourth quarter. In the Mid- dle East order bookings decelerated significantly during the second half, compared to the first half, to a very low level in the fourth quarter. Eurasia lost some momentum in the fourth quarter. Order book- ings in Latin America decreased in the final months of 2011 due to the transition to Euro 5 vehicles in Brazil. High European truck deliveries during 2005- 2008 followed by low level of deliveries in recent years means that the av erage age of the truck population is increasing. The higher average age impacts demand for workshop hours and parts positively. This has a stabilising effect on Scania’s profitability. There is also good service demand outside Europe. Production of vehicles has been adjusted, both at the European and the Latin American units, to meet the current level of de- mand. As part of this adjustment, fixed term tempo- rary contracts for about 1,900 employees are not being extended. Scania is also deferring some investments and is more re strictive in recruitment and spending. The outlook for 2012 is difficult to assess, especially in Europe in light of the eco- nomic policy problems in the euro zone. Scania’s good earnings and cash flow during the past two years have strengthened t he Group’s balance sheet while financing has been secured for the next sev- eral years. Scania is well-positioned following re- cent service and product launches.
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