SÖDERTÄLJE, Sweden, April 27, 2018 /PRNewswire/ -- Scania's net sales rose to a record high SEK 31.1 billion and earnings in the first quarter amounted to SEK 3,315 m., which gave an operating margin of 10.7 percent.
Summary of the first three months of 2018
- Operating income rose by 8 percent to SEK 3,315 m. (3,081)
- Net sales increased by 6 percent to SEK 31,115 m. (29,299)
- Cash flow amounted to SEK -437 m. (2,353) in Vehicles and Services
- As from 2018 Scania's presentation of the income statement has been adjusted to align with Volkswagen Group's (including comparative periods)
Comments by Henrik Henriksson, President and CEO
"Scania's net sales rose to a record high SEK 31.1 billion and earnings in the first quarter amounted to SEK 3,315 m., which gave an operating margin of 10.7 percent. Higher vehicle and service volume contributed positively while a less favourable market mix, higher production costs for running double product ranges and continued constraints in the supply chain impacted earnings negatively. Demand for trucks in Europe remains very good due to the positive economic situation. The trend in demand in Latin America is positive, mainly driven by the continued recovery in Brazil. In Eurasia, the trend in demand is positive, due to Russia where order bookings are very strong. In Asia, demand remains at a high level, mainly due to Iran. Demand for Buses and Coaches in Europe continues to be strong. The business area Engines has record high demand, mainly driven by order bookings for industrial engines. There is high capacity utilization in customer vehicle fleets and service revenue amounted to a record high SEK 6,500 m. (5,851), an increase of 11 percent in local currency. The steady growth in service revenue is a clear result of Scania's strategic investment in a vertically integrated service business, which means that we comprehensively support our customers' operations. The breadth and flexibility in the offering including service-related products, digital and connected services, driver services, financing and insurance, means that solutions can be tailored to customer needs with improved profitability as a result. Financial Services maintained the trend of increased profitability and reported operating income of SEK 302 million. Credit losses remain at low levels.
For the second consecutive year, Scania's new generation trucks were victorious in the 1000 Point Test − Europe's most comprehensive comparative test for trucks. The new Scania truck was top-rated in the categories of cab, driveline and performance, fuel consumption and in cost and payload. Scania also received the Green Truck Award again − a special comparative test with fuel consumption in focus. Since the new truck generation was launched during autumn 2016, Scania has come out victorious in practically all comparative and individual trade press tests. Low fuel consumption of course not only reduces costs, it is also connected with increased energy efficiency, lower CO2 emissions and improved sustainability."
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The following files are available for download:
Scania Interim Report January-March 2018