Scania reports Q1 net earnings of 2.25B Swedish kronor, up 16.8% from year-ago period as net sales rise 9% to 21.13B kronor

Nevin Barich

SODERTALJE, Sweden , April 11, 2014 (press release) – 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.”

Contact persons
Per Hillström
Investor Relations
Tel. +46 8 553 502 26
Mobile tel. +46 70 648 30 52

Erik Ljungberg
Corporate Relations
Tel. +46 8 553 835 57
Mobile tel. +46 73 988 35 57

Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. Service-related products account for a growing proportion of the company’s operations, assuring Scania customers of cost-effective transport solutions and maximum uptime Scania also offers financial services. Employing some 41,000 people, the company operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2013, net sales totalled SEK 86.8 billion and net income amounted to SEK 6.2 billion. Scania press releases are available on www.scania.com (http://www.scania.com/se)

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