The recovery has continued during the second quarter of 2021 and both order intake and deliveries rose sharply compared to the previous year.
Summary of the first six months of 2021
• Net sales increased by 28 percent to SEK 74,776 m. (58,469)
• Operating income increased by 246 percent to SEK 9,733 m. (2,813)
• Cash flow amounted to SEK 3,661 m. (1,867) in Vehicles and Services
• In the second quarter of 2021, net sales increased by 54 percent to SEK 39,068 m. (25,418) and operating income increased to SEK 5,076 m. (-192).
Comments by Christian Levin, President and CEO
“The recovery has continued during the second quarter of 2021 and both order intake and deliveries rose sharply compared to the previous year. Scania delivered strong earnings with an operating margin of 13.0 percent, both in the second quarter and in the first half of 2021.
Scania has managed to avoid unplanned production stoppages also during the second quarter, despite a very strained situation with a shortage of components in the supply chain. The collaboration among suppliers, employees and the trade unions – all with Scania’s core value “customer first” in full focus – has been successful and thanks to a good dialogue with our customers, we have found solutions to minimise the negative impact on deliveries to them. Unfortunately, we do not expect the shortage of semiconductors to end in the short term but it is something we have to continue to deal with.
We see that our customers’ transport activity is high, both from measuring operating data from connected vehicles as well as in the order books for trucks. In the global bus and coach market, the low level of activity continues due to the pandemic and it is reflected in demand for tourist buses and coaches. In Power Solutions, demand is still high. The service business is continuing to grow and Scania has managed to keep the majority of workshops open for our customers during both the second and third waves of the pandemic. In Financial Services, the trend in the number of new financed vehicles is positive and also as regards our customers’ ability to pay.
We have passed a milestone in the second quarter with more than 500,000 connected vehicles. The majority of Scania’s vehicle fleet rolling in around 100 markets is now connected. Data gathered from such a large vehicle population provides a valuable insight into customer behaviour and enables analysis of our products in operation. This information is crucial for Scania’s ability to deliver sustainable transport solutions, not least because we can sharpen our service offering to customers, helping them to reduce their carbon emissions. We can also monitor the vehicles based on engine or fuel categories. In this way, we follow up Scania’s Science Based Targets – and our customers can also follow up their own climate targets.
Step by step, we are making new advances with regard to sustainable transport. We have communicated to our customers that a brand new, even more fuel-efficient platform for combustion engines is coming in the near future. To focus on energy efficiency in conventional powertrains and increase the share of biofuels, while we intensify sales of electric vehicles is the way forward for achieving our climate targets. The rollout of Scania’s fully-electric trucks is ongoing and we have now integrated our production of electric vehicles on the same assembly lines as the combustion engine vehicles.
Our owner TRATON GROUP has recently together with Daimler Truck and Volvo Group signed a memorandum of understanding with the plan to install and operate a high -performance public charging network for battery electric heavy-duty long-haul trucks and coaches across Europe. Through partnerships like this we can accelerate the shift towards a sustainable transport. However, a piece of the puzzle that still requires more work and support on the policy side is power supply from renewable energy sources and expansion of the electrical grid.”
SOURCE: Scania
