SÖDERTÄLJE, Sweden--(BUSINESS WIRE)--Scania’s sales amounted to SEK 23.1 billion and earnings for the first quarter amounted to SEK 2,295 m. Higher vehicle volume in Europe and higher service volume were partly offset by negative currency rate effects and low capacity utilisation in the production system in Latin America.
Summary of the first three months of 2016
· Operating income rose by 2 percent to SEK 2,295 m. (2,245)
· Net sales increased by 3 percent to SEK 23,056 m. (22,321)
· Cash flow amounted to SEK 133 m. (783) in Vehicles and Services
Comments by Henrik Henriksson, President and CEO
“Scania’s sales amounted to SEK 23.1 billion and earnings for the first quarter amounted to SEK 2,295 m. Higher vehicle volume in Europe and higher service volume were partly offset by negative currency rate effects and low capacity utilisation in the production system in Latin America. The high level of investments is starting to impact earnings. Scania’s order bookings for trucks in Europe increased compared to the previous year and reached the highest level for a first quarter since 2007. Demand in the eastern and southern parts of Europe increased strongest, while some of Scania’s traditional major markets were stable at a high level. Scania’s market share for trucks in Europe amounted to 17.4 percent compared to 17.2 percent in 2015. Demand in Brazil is still very low and even though order bookings in Russia rose somewhat compared to the previous year, there are no real signs of recovery in Latin America or Eurasia. In Asia, order bookings rose compared to the first quarter of the previous year. Order bookings in Buses and Coaches rose compared to the year-earlier period and mainly increased in the Nordic region. In Engines, order bookings fell compared to the first quarter of 2015 due to declining demand in Brazil. Scania is continuing its long-term efforts to boost its market share in Services. Service revenue amounted to SEK 5.2 billion, an increase of 6 percent in local currency. Scania was early in investing in connected vehicles and today nearly 30 percent of Scania’s 10-year rolling fleet is connected. Connectivity is an important component, enabling Scania to offer its customers more efficient services aimed at improving their profitability. Financial Services reported operating income of SEK 253 million and credit losses remain at low levels.”
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Scania is a part of Volkswagen Truck & Bus GmbH and one of the world’s leading manufacturers of trucks and buses for heavy transport applications. Scania is also leading provider of industrial and marine engines. Service-related products account for a growing proportion of the company’s operations, assuring Scania customers of cost-effective transport solutions and maximum uptime. Scania also offers financial services. Employing some 44,000 people, the company operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2015, net sales totalled SEK 95 billion and net income amounted to SEK 6.8 billion. Scania press releases are available on www.scania.com (http://www.scania.com/se)
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