Scania’s sales reached SEK 75.2 billion in the first nine months of 2016 and the company’s underlying operational performance was strong. Higher vehicle volume in Europe and increased service revenue was partly offset by negative currency rate effects and lower deliveries in Latin America.
Summary of the first nine months of 2016
- Operating income amounted to SEK 3,733 m. (7,046), and was negatively impacted by a provision of SEK 3.8 billion related to the European Commission’s competition investigation
- Operating income excluding items affecting comparability rose by 7 percent to SEK 7,533 m. (7,046) , resulting in an operating margin of 10.0 (10.1) percent
- Net sales rose by 8 percent to SEK 75,209 m. (69,686)
- Cash flow amounted to SEK -192 m. (1,220) in Vehicles and Services
Comments by Henrik Henriksson, President and CEO
“Scania’s sales reached SEK 75.2 billion in the first nine months of 2016 and the company’s underlying operational performance was strong. Higher vehicle volume in Europe and increased service revenue was partly offset by negative currency rate effects and lower deliveries in Latin America.
Earnings were impacted negatively by the high investment level related to Scania’s new truck generation. Scania’s position in the European market remained strong with a market share of around 17 percent.
The replacement need and economic situation in Europe continues to have a positive impact on demand for trucks. Order bookings in Latin America continued at a low level, and Brazil is still uncertain.
In Eurasia, order bookings increased somewhat and Russia appears to have bottomed out. Scania increased its market share in Buses and Coaches in Europe to 7.6 percent, compared to 6.9 percent in 2015.
Demand for buses and coaches is high in Europe, Latin America and Asia. In Engines, demand remains at a relatively low level. Service revenue amounted to a record SEK 15.8 billion during the first nine months of 2016, an increase of 3 percent and of 7 percent in local currency.
Financial Services showed a strong performance and customer payment capacity is good. Scania launched its new truck generation during the third quarter of 2016. It has been very positively received and the S series has been elected the prestigious “International Truck of the year 2017”. The jury’s motivation emphasised driver comfort, safety aspects and fuel savings for hauliers of 5 percent.
Together with Scania’s recently introduced option to service vehicles based on flexible maintenance plans − a service made possible by continual monitoring of connected vehicles’ operating data − Scania Maintenance is reaching an entirely new level. Through a great deal of precision, the vehicle can receive exactly the maintenance it needs to spend more time generating revenue and less time at the workshop.”