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Truck maker, Scania enters rough times but still feels that the future is bright

Monday, 22 October 2012
Things have not gone well for bus and truck manufacturer, Scania, which has operations in Södertälje, in Sweden.
Earnings in the third quarter of this year landed at nearly Skr1.9 million, compared with earnings of almost Skr3 million in the comparable period last year.
This echoes Scania's earnings for the first nine months of 2012 which amounted to Skr 6,135 million. Lower vehicle volume, lower capacity utilisation and a higher level of costs pulled down earnings, the company said in the press release.
Demand for Scania trucks and bus chassis also decreased and the the number of orders has dropped by ten percent compared to last year.

According to Scania's CEO, Martin Lundstedt, profit was also pulled down the strengthening of the krona, which was also seen as detrimental, when Scania has a large proportion of the cost base in Sweden.

"The short-term outlook is very difficult to judge and imposes stricter demands for volume flexibility and cost control. In the longer term, Scania believes there are good growth opportunities. Investments in development projects and expansion of technical production capacity for vehicles continue, along with the expansion of the sales and service organisation in emerging markets, ” says Martin Lundstedt in a press release.
Scancomark.com Team




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