Scania interim report January-March 2017

Wednesday, May 10, 2017

Scania’s net sales rose to a record high SEK 28.4 billion and earnings for the first quarter reached SEK 3,081 m. Higher vehicle and service volumes were partly offset by the high investment level related to Scania’s new truck generation.

Summary of the first three months of 2017:

Operating income rose by 35% to SEK 3,081 m. (2,275)
Net sales increased by 23% to SEK 28,411 m. (23,056)
Cash flow amounted to SEK 2,351 m. (133) in vehicles and services

Henrik Henriksson, president and CEO, said demand for trucks in Europe remains very strong due to the positive economic situation. Scania’s market share for trucks in Europe amounted to 16.8% compared with 17.4% in 2016.

He said demand for trucks had increased in Latin America, Eurasia and Asia, and in buses and coaches, demand was strong in Asia. The trend in demand for industrial and marine engines was still positive, while remaining weak on power generation side. Service revenue amounted to a record high SEK 5,849 m. (5,152), an increase of 14%.

Scania’s revenue generated directly or indirectly from the 250,000 connected vehicles in the Scania fleet is constantly increasing. Henriksson said connectivity is an important component, enabling Scania to offer customers more efficient services aimed at improving their profitability.

The new Scania R 450 received the ‘Green Truck 2017’ award in the heavy tractor class. The award is based on the superior fuel performance in comparative on-road testing and the figures speak for themselves – an average consumption of 23.7 litres/100 km. Whether through fuel-efficient diesel vehicles or through alternative fuels, Scania says sustainability and profitability go hand-in-hand. Apart from offering the industry’s most energy-efficient powertrains, Scania is making dedicated efforts to reduce transport companies’ dependence on fossil fuels, by having the market’s broadest range of hybrids and engine alternatives for all commercially available biofuels. All of Scania’s standard vehicles may be operated using biodiesel and up to 100-percent hydrotreated vegetable oil (HVO).