Scania’s earnings for the first nine months of 2014 amounted to SEK 6,356 m. Positive currency rate effects and higher service volume were offset by a weaker market mix.
Summary of the first nine months of 2014
• Operating income rose by 7 percent to SEK 6,356 m. (5,939)
• Net sales rose by 6 percent to SEK 65,638 m. (61,864)
• Cash flow amounted to SEK 2,213 m. (1,741) in Vehicles and Services
Comments by Martin Lundstedt, President and CEO:
“Scania’s earnings for the first nine months of 2014 amounted to SEK 6,356 m. Positive currency rate effects and higher service volume were offset by a weaker market mix. Total order bookings for trucks during the third quarter decreased, compared to high level of the previous quarter, mainly related to the Middle East. Order bookings also decreased in Europe compared to the previous quarter. However, this is in line with the seasonal pattern in the European market. Scania has strengthened its position in the European market with increased market share compared to 2013, among other things through a leading Euro 6 range. Order bookings in Latin America were in line with the previous quarters. In Asia, order bookings decreased, primarily in the Middle East, which declined from a very high level in the second quarter. Demand in Russia was adversely affected by the turbulence in the region and order bookings were at a low level – although a slight improvement compared to the second quarter of 2014. Scania has also increased its market share. In buses and coaches, order bookings were stable compared to the previous quarter. In Engines, order bookings rose, driven by regions outside of Europe. Scania is continuing its long-term efforts to boost market share in Services and revenue increased by 11 percent during the third quarter to the highest level in the company’s history. Financial Services showed a strong performance and customer payment capacity is good. The level of activity related to development projects remains high and Scania is investing in expanded production and service capacity. In gearboxes, Scania has initiated extensive cooperation with MAN, which will mean a stronger product offering and generate significant synergies in the longer term.”