SÖDERTÄLJE, Sweden--(BUSINESS WIRE)-- Scania's earnings for the first half of 2014 amounted to SEK 4,276 m. Higher service volume was offset by a weaker market mix and negative currency rate effects. Total order bookings for trucks during the second quarter were at a high level.
Summary of the first six months of 2014
· Operating income rose by 8 percent to SEK 4,276 m. (3,971)
· Net sales rose by 4 percent to SEK 43,917 m. (42,139)
· Cash flow amounted to SEK 1,313 m. (405) in Vehicles and Services
Comments by Martin Lundstedt, President and CEO:
“Scania's earnings for the first half of 2014 amounted to SEK 4,276 m. Higher service volume was offset by a weaker market mix and negative currency rate effects. Total order bookings for trucks during the second quarter were at a high level. Order bookings in Europe improved compared to the first quarter of 2014. A somewhat improved economic situation and the replacement need are supporting demand. Scania strengthened its position in the European market with increased market share, among other things through a leading Euro 6 range, which is confirmed by tests in the trade press. Order bookings in Latin America were in line with the previous quarters. In Asia, order bookings improved sharply, related to the Middle East. Demand in Russia was adversely affected by the turbulence in the region. In buses and coaches, Scania received strategic orders for BRT-systems in Africa and Latin America. In Engines, order bookings rose, driven by Europe and Asia. Scania has initiated collaboration on engine deliveries to Atlas Copco. Scania is continuing its long-term efforts to boost market share in Services and revenue increased by 5 percent during the first half of 2014. Financial Services showed a strong performance and customer payment capacity is good. During the second quarter, Scania could welcome a clear and long-term ownership structure as the offer from Volkswagen went through. Cooperation projects with MAN and Volkswagen can now be intensified, which will provide support to the growth scenario up to 2020. The level of activity related to development projects remains high and Scania is investing in expanded production and service capacity.”
For more information please see the pdf at http://news.cision.com/scania/r/scania-interim-report-january-june-2014,c9618538.
Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. Service-related products account for a growing proportion of the company’s operations, assuring Scania customers of cost-effective transport solutions and maximum uptime Scania also offers financial services. Employing some 41,000 people, the company operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2013, net sales totalled SEK 86.8 billion and net income amounted to SEK 6.2 billion. Scania press releases are available on www.scania.com (http://www.scania.com/se)
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