Scania sales up by 15%

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Scania’s net sales in the first nine months of 2017 rose to a record high SEK 86.4bn (£7.84bn), an increase of 15% compared to the previous year.

The manufacturer said that demand for its new truck range was good and the service trend remains positive.

Scania’s operating income, excluding items affecting comparability, amounted to SEK 9,080m, up from SEK 7,492m in 2016. Operating income rose to SEK 9,080m. (2016: SEK 3,692m).

Henrik Henriksson, President and CEO of Scania, commented: “The period was affected by a high investment level, higher production costs for running double product ranges and a less favourable market mix.

“In spite of this, the company managed to present strong earnings for the first nine months of 2017 of SEK 9,080m, giving an operating margin of 10.5%. 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% 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. Order bookings in coaches and buses were strong overall and increased by 2% compared to the same period in 2016. In the business area Engines, the demand trend is positive in all segments. Service revenue amounted to a record high SEK 17.5bn, an increase of 11%.

“Financial Services reported operating income of SEK 862m 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.

“In October, Scania received the decision from the European Commission concerning alleged inappropriate exchange of information. Scania contests its findings and will appeal against it. Scania also emphasises that it has co-operated fully with the European Commission during the investigation period.”