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Scania Interim Report January-March 2008

- Operating margin rose to 16.4 percent (15.9) and net margin increased to 11.4 percent (10.9)

- Order bookings were lower, but still somewhat higher than deliveries during the quarter

- Net sales increased by 15 percent to SEK 21,991 m. (19,129)

- Net income for the period rose by 21 percent to SEK 2,513 m. (2,085)

- Earnings per share amounted to SEK 3.14 (2.61)

Comments by Leif Östling, President and CEO

“Scania is continuing to grow with strong profitability, primarily driven by higher vehicle and service volume and increased prices. Order bookings were lower compared to the exceptionally strong order bookings during the first quarter of last year, but remained at a high level. Scania’s order book is expanding somewhat, since order bookings are still higher than deliveries. Delivery times are currently 9-12 months, compared to a normal situation of 3-4 months. This, in combination with uncertainty about economic developments, is causing customers in Europe to hold off on submitting orders. Demand remains strong in Russia and other CIS countries, Latin America and the Middle East. Our plan remains to increase production to an annual rate of 90,000 vehicles by year-end 2008 and to have an installed technical capacity of 100,000 vehicles by the end of 2009. Meanwhile our flexibility in production is increasing and we are well prepared for a continued volume upturn but also for possible lower demand. Our financial outlook remains unchanged.”