Scania’s earnings for the full year 2012 amounted to SEK 8,300 m. Lower vehicle volume, lower capacity utilisation and a higher level of costs pulled down earnings. Order bookings for trucks rose during the fourth quarter of 2012.
Summary of the full year 2012
- Operating income fell to SEK 8,300 m. (12,398), and earnings per share fell to SEK 8.31 (11.78)
- Net sales decreased by 9 percent to SEK 79,603 m. (87,686)
- Cash flow amounted to SEK 3,025 m (6,970) in Vehicles and Services
- The Board of Directors proposes a dividend of SEK 4.75 (5.00) per share.
Comments by Martin Lundstedt, President and CEO
“Scania’s earnings for the full year 2012 amounted to SEK 8,300 m. Lower vehicle volume, lower capacity utilisation and a higher level of costs pulled down earnings. Order bookings for trucks rose during the fourth quarter of 2012. The upturn was driven by Latin America and order bookings were exceptionally strong in Brazil, where extensive subsidies impacted demand positively. Order bookings in Europe remained at a low level. Customers are hesitant about investing in new vehicles in view of the uncertain economic climate. Meanwhile, there is a replacement need, given the low truck deliveries in recent years. The coming transition to Euro 6 emission standards may also provide some support to demand. In Russia, order bookings were at a good level. Order bookings in Asia decreased compared to the previous quarter, mainly due to markets in the Middle East. Order bookings for buses remained at a low level, with an upturn in Europe and a downturn in Latin America compared to the third quarter. Order bookings for engines improved compared to the very low level in the third quarter. Service sales are generally at a stable level with increased demand in several regions outside Europe during the full year 2012. Lower economic activity is adversely impacting service demand in southern Europe. Given low demand for vehicles in Europe and the Middle East, the daily production rate is reduced by about 15 percent in Europe in the beginning of the first quarter of 2013 compared to the end of 2012. A total of about 700 personnel on hire have been affected. An adjustment of the general cost level to lower demand is also under way. Looking ahead, there are good growth opportunities. Therefore, Scania will continue to prioritise investments in core development projects and will expand the sales and services organisation in emerging markets.”
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