Quarterly Reports top

YEAR-END REPORT JANUARY – DECEMBER 1996

Summary

  • Number of trucks and buses sold: 42,991 (1995: 44,637).
  • Sales: SEK 33,730 m. (34,840) [USD 4,910 m. (5,071)]1)
  • Operating income: SEK 3,057 m. (5,352) [USD 445 m. (779)], equivalent to a margin of 9.1 (15.4) percent.
  • Earnings reflect the actual exchange rate situation. The stronger Swedish krona adversely affected operating income by SEK 900 m. [USD 131 m.].
  • The changeover costs for production of the 4-series truck range totalled SEK 650 m. [USD 95 m.].
  • Operating income during the fourth quarter: SEK 628 m. (1,464) [USD 91 m. (213)].
  • Fourth quarter earnings were affected by SEK 290 m. [USD 42 m.] in expenses for personnel reductions and by a ruling in the Argentine Supreme Court on a tax dispute which had a positive effect of SEK 400 m. [USD 58 m.] on income in Latin American operations.
  • Income after financial items: SEK 2,706 m. (4,847) [USD 394 m. (706)].
  • Return on shareholders’ equity: 23.1 (60.1) percent.
  • Net income: SEK 1,981 m. (3,280) [USD 288 m. (477)].
  • Earnings per share: SEK 9.90 (16.40) [USD 1.44 (2.39)].
  • Earnings per share according to U.S. GAAP: SEK 10.30 (15.75) [USD 1.50 (2.29)].
  • Proposed dividend for 1996: SEK 5.50 (5.50) [USD 0.80 (0.80)].

The market in brief:

  • Scania’s market share in western Europe increased to 15.5 (14.3) percent.
  • In Brazil, Scania’s market share rose to 38.2 (33.9) percent.
  • Scania’s truck order bookings from westernEuropean markets declined by 7 percent.
  • There was growing uncertainty in the European market during the fourth quarter.

***

Comment by Leif Östling, President and CEO of Scania:

“During 1996 we implemented the largest production changeover in Scania’s history with the 4­series. The new product range will have a gradual impact on our cost structure during 1997 and 1998. The prevailing uncertainty in the western European market was apparent during the fourth quarter of 1996, when our order bookings declined by 15 percent, and continued during January 1997, when order bookings were 5 percent below those of January last year,” says Leif Östling, President and CEO of Scania.

“Despite the heavy strain that the changeover inflicted on the Scania organisation, and despite stiffer competition, we raised our market share in western Europe by more than one percentage point to 15.5 percent. Today we are well equipped for the future, with new product generations of trucks, buses and engines,” Mr Östling concludes.

For further information, please contact:
Questions from the media:
Lars Christiansson, Communications and Public Affairs Tel +46 8 5538 1212, mobiltel +46 70 590 50 80
Hans Rubenstein, ” “ Tel +46 8 5538 1258, mobiltel +46 70 556 07 97
Magnus Hahn, ” “ Tel +46-8 5538 3510, mobiltel +46 70 551 79 03
Questions from investors and analysts:
Cecilia AnderssonInvestor Relations Tel +46 8 5538 3557, mobiltel +46 70 588 35 57

1) Translated solely for the convenience of the reader at an exchange rate of SEK 6.87 = USD 1.00.

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