Scania profits rise in third quarter


European business is leads the way for the truck manufacturer

Scania profits rise in third quarter
Scania's interim report shows it earned over $1 billion over the first nine months of the year

 

Scania has reported a significant increase in operating income globally over the first nine months of this year.

The Sweden-based manufacturer has released an interim reports detailing its results to the end of September. It says operating income for the period increased 11 per cent to 7.05 billion krona (A$1.16 billion) from the same period in 2014.

CEO Per Hallberg says the rising profit came off the back of the European market, where gains more than balanced out reduced sales in other parts of the world.

"Compared to the third quarter last year, order bookings for trucks in Europe rose," he says. "Scania’s position in the European market remains strong with a market share of 16.6 per cent compared to 15 per cent in 2014."

Orders in Latin America and Asia (including Australia and New Zealand) fell over the nine month period.

The Middle East region (also part of the Asia market) was particularly hard hit, while conflict in Ukraine also dulled sales in Eurasian countries.

Hallberg says Scania is ramping up its services business, including finance, around the world.

"Scania is continuing its long-term efforts to boost its service business and service revenue increased by seven per cent during the third quarter," he adds.

"Financial Services showed a strong performance and customer payment capacity is still good."

"The level of activity related to development projects remains high and Scania is investing in expanded production and service capacity."

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