Scania’s earnings for the first quarter amounted to SEK 2,257 m. Both vehicle and service volume increased, which was partly offset by weaker emerging markets currencies. Total order bookings for trucks during the first quarter were higher than the beginning of last year.
Summary of the first three months of 2014
- Operating income rose to SEK 2,257 m. (1,933), and earnings per share rose to SEK 1.95 (1.75)
- Net sales rose by 9 percent to SEK 21,126 m. (19,341)
- Cash flow amounted to SEK 730 m. (-88) in Vehicles and Services
Comments by Martin Lundstedt, President and CEO:
“Scania’s earnings for the first quarter amounted to SEK 2,257 m. Both vehicle and service volume increased, which was partly offset by weaker emerging markets currencies. Total order bookings for trucks during the first quarter were higher than the beginning of last year. The negative effect on demand in Europe after pre-buys of Euro 5 vehicles was less than expected and order bookings increased. The improved economic situation in Europe together with the replacement need means that the underlying trend in demand is positive. Scania has strengthened its position in the European market through increased market share and a leading Euro 6 range, which is confirmed by Euro 6 tests in the trade press. Order bookings in Latin America remained in line with the previous two quarters. In Asia, order bookings improved and in Russia, order bookings increased significantly. Order bookings for buses and coaches rose in Europe, while they fell in Latin America and Eurasia. In Engines, order bookings were somewhat better than in the same period of 2013 and Scania has initiated collaboration on engine deliveries with another major OEM. Scania is continuing its long-term efforts to boost market share in Services and revenue increased by 7 percent in local currencies during the first quarter. Financial Services showed a strong performance and customer payment capacity is good. The trend in demand in early 2014 indicates a continued high level of vehicle and service volume. There are also good growth opportunities in the longer term and the expansion of annual technical production capacity towards 120,000 vehicles is continuing. To strengthen competitiveness, the level of activity related to development projects remains high, at the same time as Scania is expanding its sales and service capacity in emerging markets.”