Scania has released its year-end report for 2012, which indicates the company has experienced drops in operating income, earnings per share and net sales.
The manufacturer says lower vehicle volume, lower capacity utilisation and a higher level of costs pulled down earnings. However, order bookings for trucks rose during the fourth quarter of 2012.
A summary of results for the full year, 2012:
- Operating income fell to SEK 8,300 m. (12,398), and earnings per share fell to SEK 8.31 (11.78)
- Net sales decreased by 9% to SEK 79,603 m. (87,686)
- Cash flow amounted to SEK 3,025 m (6,970) in Vehicles and Services
- The Board of Directors proposes a dividend of SEK 4.75 (5.00) per share.
Martin Lundstedt, Scania’s President and Chief Executive Officer, said: “Order bookings for buses remained at a low level. We have seen an upturn in Europe and a downturn in Latin America compared to the third quarter of last year. Order bookings for engines improved compared to the very low level in the third quarter of last year.
“Service sales are generally at a stable level with increased demand in several regions outside Europe during the full year 2012. Lower economic activity is adversely impacting service demand in southern Europe.
“Given the low demand for vehicles in Europe and the Middle East, the daily production rate has been reduced by about 15% in Europe in the beginning of the first quarter of 2013 compared to the end of 2012. A total of about 700 personnel on hire have been affected.
“An adjustment of the general cost level to lower demand is also under way.
“Looking ahead, there some are good growth opportunities. Therefore, this company will continue to prioritise investments in core development projects and will expand the sales and services organisation in the emerging markets.”
