Scania posts record financial results

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Scania’s net sales rose to a record level of nearly SEK 104bn (£9.5bn) in the 12 months ended December 31, 2016.

Total deliveries of trucks, buses and coaches reached all-time high levels, while service revenue amounted to a record of almost SEK 22bn (£2bn), an increase of 5% (7% in local currency).

The company’s operating income, excluding items affecting comparability, rose by 6% to SEK 10.18bn (£900m) from SEK 9.64bn (£880m), at a slightly lower operating margin of 9.8%, from 10.2%.

With no exclusions, operating income stood at SEK 6.38bn (£580m). It was negatively impacted by a provision of SEK 3.8 billion (£340m) related to a European Commission competition investigation.

Net sales rose by 10% to a record high SEK 103.93bn (£9.4bn), and cash flow stood at SEK 3.43bn (£300m).

Henrik Henriksson, President and CEO of Scania, said: “The company’s operational performance was strong.

“Higher vehicle volume in Europe and higher service volume impacted earnings positively but this was partly offset by negative currency rate effects, lower deliveries in Latin America (mainly related to Brazil) and by the high cost of investments related to Scania’s new truck generation.

“Scania’s position in the European market remains strong with a market share of 16.5%. The replacement need and economic situation in Europe continues to have a positive impact on demand for trucks.

“Order bookings in Latin America remain at a low level, mainly due to the very uncertain situation in Brazil. In Eurasia, order bookings increased somewhat and Russia appears to have bottomed out. Demand for buses and coaches remains at a high level in Europe.

“In engines, demand for industrial and marine engines is good, while remaining weak on the power generation side.”