Next GEN Scania Range Turns Record Sales

Scania has reported a 17 per cent rise in global net sales to a record SEK58.7 billion (A$9.1 billion) in a half year marked by the impact of its ‘New Truck Generation’.

Though the new vehicles are yet to land on Australian shores, that performance comes as the domestic operation sees 443 vehicles delivered, up 65 per cent for the year to date.

"The period was affected by a high investment level and increased production costs for double product ranges," Scania president and CEO Henrik Henriksson states.

"In spite of this, the company delivered a very strong performance thanks to strong demand for the new truck range and a continued positive trend in services.

"Earnings in the first half of 2017 amounted to SEK6.464 million, giving an operating margin of 11.0 per cent.

"Order bookings for trucks rose by 29 per cent compared to the same period last year.

"Demand for trucks in Europe is holding up due to the favourable economic situation and Scania’s market share for trucks in Europe remains strong at 16.8 per cent.

"The trend in Latin America is positive and we see increased demand in Brazil from very low levels, mainly related to increased activity in the agricultural sector.

"In Eurasia, the trend in demand is positive as Russia is continuing to recover.

"In Asia, demand increased thanks to a good sales performance, particularly in China and Iran.

"In Asia, the European truck segment is growing in line with the advancement of the logistics systems − a development largely driven by the major e-commerce players. "

SCANIA SERVICES BOOM

The positive note continues in Scania’s other segments – such as Engines and Buses and Coaches – but also in fleet services.

"Service revenue amounted to a record high SEK11.7 billion, an increase of 12 per cent," Henriksson continues.

"This was driven by high uptime in customer vehicle fleets and an increase in services directly or indirectly generated from the 270,000 connected vehicles in the Scania fleet.

"Connectivity is an important business driver, which is enabling Scania to offer customers more efficient services aimed at improving their profitability.

"Financial Services reported operating income of SEK520 million and credit losses remain at low levels."

Views:0