Scania’s net sales rose to a record level of nearly 104 billion Swedish Kroner (SEK) for the January to December 2016 financial year.
Scania president and chief executive officer Henrik Henriksson says higher vehicle volume in Europe and higher service volume impacted earnings positively, but negative currency rate effects, lower deliveries in Brazil, and investment costs related to Scania’s new truck generation partly offset this.
“Scania’s position in Europe remains with a 16.5% market share,” says Henriksson.
“The replacement need and economic situation in Europe continue to have a positive impact on truck demand,” he says.
As well as total deliveries of trucks and buses reaching all-time high levels, it service revenue amounted to a record of almost SEK 22 billion, an increase of 5%.
Operating income excluding items affecting comparability rose by 6% to SEK 10,184 m. (9,641), resulting in an operating margin of 9.8 (10.2)%.
Operating income amounted to SEK 6,384 m. (9,641) and was negatively impacted by a provision of SEK 3.8 billion related to the European Commission’s competition investigation
Net sales rose by 10% to a record high SEK 103,927 m.
Cash flow amounted to SEK 3,427 m. in vehicles and services.
According to Henriksson, order bookings in Latin America remain at a low level, mainly due to the situation in Brazil.
He says in Eurasia, orders increased somewhat, and Russia appears to have bottomed out. Demand for buses and coaches remains at a high level in Europe.
Henriksson says demand for Scania’s industrial and marine engines is good while remaining weak on the power generation side.
“The success of the new generation of Scania trucks has been immediate, and the truck has outperformed the competition in all trade press tests it has entered,” says Henriksson.
“Nearly all aspects of the new generation truck have been praised – the powertrain, performance, comfort, braking capacity, visibility and steering,” he says.
“Combined with Scania Maintenance with Flexible Plans, our new tailor-made service enabled by continual monitoring of connected vehicles’ operating data, customer earning potential is enhanced,” says Henriksson.
“When every truck receives exactly the maintenance it needs, the customer enjoys maximum vehicle up time,“ he says.
