Scania income up despite falling global deliveries


Income and European truck deliveries rise but global figures dragged down by declining regions

Scania income up despite falling global deliveries
Income up, but vehicle numbers down for Scania in 2015.

 

Despite declining truck and bus deliveries, Scania has announced global income and sales gains in 2015.

As shown in the company’s Australian results earlier this month, margins are being buoyed by growing service arms around the world as vehicle numbers decline.

Seen in local results announced a fortnight ago, Scania's numbers are declining globally with order bookings falling seven per cent to 77,091 and delivery numbers dropping four per cent in 2015.

However in the positive news, the Swedish company achieved a record net sales figure of SEK 94.90 million (A$15.89 million), jumping three per cent on 2014.

Also rising is the truck manufacturers’ operating income, which increased 11 per cent to SEK 9.64 million (A$1.61 million) during the year, aided by operating income growth in both its vehicle and services arm, and its financial services division.

As stated, this financial services arm growth saw the division break its previous record earnings, reaching SEK 1 billion (A$0.17 billion) in 2015, and aiding the company to offset its product sales decline.

Scania president and CEO Henrik Henriksson says positive gains were hindered by declines outside Europe.

"Higher vehicle volume in Europe, record high service volume, positive currency rate effects and record earnings from Financial Services were partly offset by lower vehicle volume in Latin America, Eurasia and Asia," he says.

The 12-month delivery figures out of Eurasia, Latin America and Asia show declines of 57 per cent, 50 per cent, and 11 per cent respectively.

Numbers in Europe remain strong, however, with demands for Euro 6 models carrying across the fourth quarter and even increasing its continental market share up to 16.5 per cent.

Delivery figures for the region rose 27 per cent, twice that of the only other positive region, Africa and Oceania.

Though, as local Australian figures point to a decline in 2015, the regional growth is likely attributed to a significant rise in truck numbers arriving in South Africa.

For its buses and coaches, Scania saw positives in Europe but declines elsewhere.

European deliveries jumped 41 per cent over 2015; however they were countered by decreases in Eurasia, Latin America, and Africa and Oceania of 10 per cent, 16 per cent and 25 per cent respectively.

Asia saw a four per cent loss in order bookings but an 11 per cent rise in deliveries.

In total, Scania delivered 22 more bus and coaches in 2015 than 2014.

In terms of engines, deliveries reached a record high at 8,485 units throughout the year but order bookings fell in the fourth quarter, due to lower demand in Latin America and Asia. 

 

 

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