The Quotes are Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.

Scania earnings below expectations as the economic climate slows expansion

Wednesday, 30 January 2013
Bus and truck manufacturer Scania reported a profit before tax of Skr2.125 million for the fourth quarter of 2012. That compares with profit of Skr2.807 million same period 2011. Analysts had on average expected a profit before tax of Skr2.523 million, according to Reuters.

The company's CEO and president, Martin Lundstedt, writes that order bookings for trucks rose during the fourth quarter of 2012. The upturn was driven by Latin America and order bookings were exceptionally strong in Brazil, where extensive subsidies impacted demand positively.

On the flipside, the company stressed that order bookings in Europe remained at a low level. Customers here are hesitant about investing in new vehicles in view of the uncertain economic climate. Meanwhile, there is a replacement need, given the low truck deliveries in recent years. The coming transition to Euro 6 emission standards may also provide some support to demand.

In Russia, Scania said that order bookings were at a good level. Order bookings in Asia decreased compared to the previous quarter, mainly due to markets in the Middle East. Latin America played a leading role that draws while an unwieldy European forces however, the production cuts.

Some key figures for Scania
• Operating income fell to Skr 8,300 million against Skr12,398 million, and earnings per share fell to Skr 8.31 against Skr11.78
• Net sales decreased by 9 percent to Skr 79,603 million against Skr87,686 million
• Cash flow amounted to Skr 3,025 million Skr6,970 million in Vehicles and Services
• The Board of Directors proposes a dividend of Skr 4.75 against Skr5.00 per share.
Full report
by Scancomark.com Team

We welcome your contribution. Did you find anything wrong with this article? Do you want to contribute to our news network? Do have a news tip or assist us with a correction