Scania’s net sales rose to a record high of SEK 31.1bn (£2.61bn) in the first quarter of 2018, with earnings in the first quarter amounting to SEK 3,315m (£278.2m), an 8% increase on the previous year representing an operating margin of 10.7%.
The sales increase was 6% on the previous year, which saw a figure of SEK 29.3bn (£2.46bn).
Scania’s coach and bus division saw total order bookings in line with the previous year, with a small increase in units sold from 2,637 to 2,656.
The company said its market share in Europe increased to 8.4% from 7.5% the previous year, with order bookings rising from 573 to 631.
Coach and bus deliveries increased significantly, from 1,594 to 2,073. A 15% increase was seen in Europe, with the figure rising from 460 to 527.
Net sales of coaches and buses rose by 28% to SEK 2,576m (£216.2m) compared to the previous year’s first quarter.
Henrik Henriksson, President and CEO of Scania, commented: “Higher vehicle and service volume contributed positively while a less favourable market mix, higher production costs for running double product ranges and continued constraints in the supply chain impacted earnings negatively.
“Demand for trucks in Europe remains very good due to the positive economic situation. The trend in demand in Latin America is positive, mainly driven by the continued recovery in Brazil.
“In Eurasia, the trend in demand is positive, due to Russia where order bookings are very strong. In Asia, demand remains at a high level, mainly due to Iran.
“Demand for coaches and buses in Europe continues to be strong. Our business area of engines has record high demand, mainly driven by order bookings for industrial engines.
“There is high capacity utilisation in customer vehicle fleets and service revenue, which amounted to a record high SEK 6,500m. (2017: SEK 5,851m) an increase of 11% in local currency.
“The steady growth in service revenue is a clear result of Scania’s strategic investment in a vertically integrated service business, which means that we comprehensively support our customers’ operations.
“The breadth and flexibility in the offering, including service-related products, digital and connected services, driver services, financing and insurance, means that solutions can be tailored to customer needs with improved profitability as a result.”
