New generation Scania trucks help double income


Order book at all-time high for new Scania model range

New generation Scania trucks help double income
Scania says demand for its new truck range have helped bring its order books to record highs

 

Scania says a strong order book bolstered by European demand for its new generation trucks sets it up well for the year ahead, after more than doubling its net income for the year.

The Swedish company, a subsidiary of Volkswagen, reported a net income of 8.7 billion Swedish Kroner (A$1.38 billion) for the 2017 calendar year, up 168 per cent on the 3.24 billion kroner (A$513.4 million) recorded for 2016.

Scania’s net sales increased 15 per cent to 119.7 kroner ($18.95 billion), an all-time high for the company, while its operating income was up 97 per cent to 12.43 billion kroner ($1.97 billion) for the year.

The company’s order book for trucks, buses and coaches was at 109,415 at the end of the year, up 28 per cent on 2016, while total vehicle deliveries for the year was up 12 per cent to a record high 90,777 units.

Scania CEO Henrik Henriksson said this was the first time its vehicle order book had surpassed the 100,000 vehicle mark, which he attributed to the launch of its new generation of trucks and the company’s global reach.

More than 13,000 of the 90,777 vehicles delivered over the course of the year were from the new trucking range, which launched in Australia last week, Henriksson says.

The new trucking range was also partially responsible for the 30 per cent rise in order bookings for trucks in 2017, with strong demand in Europe and a market recovery in Russia.

"The trend in Latin America is positive with continued good demand in Argentina and a slight improvement in Brazil. In Asia, demand mainly increased in Iran and China," Henriksson says.

"Higher vehicle and service volume impacted earnings positively, offsetting higher production costs for running double product ranges, constraints in the supply chain and an unfavourable market mix."

European demand drove the order book higher in the fourth quarter to 29,402 trucks, but the number ordered from Asia fell to 2,873 from 2,912 the previous quarter, due to a dip in demand from Hong Kong and China.

In Africa and Oceania, order bookings were six higher, to 1,200 vehicles in the fourth quarter of 2016, due to higher demand from Tanzania, New Zealand and Kenya and a dip in demand from South Africa.

Total truck deliveries rose 21 per cent to 24,309 during the fourth quarter despite falling 17 per cent to 1,044 trucks in the Africa and Oceania region.

 

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