Scania reports record high for sales

Swedish commercial vehicle manufacturer, Scania, has confirmed that net sales in the first nine months of 2017 rose to a record high $13.4 billion, an increase of 15 per cent compared to the previous year.

Scania President and CEO, Henrik Henriksson, has said that demand for the new truck range was good and the service trend remains positive.

“The period was affected by a high investment level, higher production costs for running double product ranges and a less favourable market mix,” said Henriksson.

“In spite of this, the company managed to present strong earnings for the first nine months of 2017 of SEK 9,080 million [$1.4 million approx.], giving an operating margin of 10.5 per cent. In the third quarter, in addition to continued high cost levels, currency started to impact negatively on earnings. Order bookings for trucks rose by 27 per cent in the first nine months compared to the year-earlier period.

“The strong demand for trucks continued in Europe. The trend in Latin America is positive and we see increased demand in Brazil from very low levels. In Eurasia, the trend in demand is positive, mainly due to Russia’s continued recovery. In Asia, demand increased thanks to strong sales efforts, particularly in China and Iran.

“In the business area ‘Engines’, the demand trend is positive in all segments. Service revenue amounted to a record high SEK 17.5 billion [$2.7 billion], an increase of 11 per cent.

“Financial Services reported operating income of SEK 862 million [$134 million] and credit losses remain at low levels. In September the second stage in Scania’s introduction of the new generation trucks was launched – the Scania XT range with trucks tailor-made for the construction and forestry industries,” he said.

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