Scania: Record Order Bookings During the Second Quarter

Scania’s order bookings for trucks reached a record level of 20,987 units during the second quarter. Among other things, Scania received a number of major orders and order bookings in Europe improved compared to the first quarter of the year. Meanwhile, demand in Russia was adversely affected by the turbulence in the region and order bookings in Latin America were significantly lower than the second quarter of last year.

The total order bookings for trucks was the highest ever for a second quarter and amounted to 20,987 units, which may be compared to 20,694 during the corresponding period of 2013.

Order bookings in Europe improved compared to the first quarter of 2014 in several markets and amounted to 9,410 trucks. This represents a downturn of 6 percent compared to second quarter of last year, but it should be noted that the market last year was characterised by a high level of activity due to pre-buys of Euro 5 trucks. The somewhat improved economic situation and the replacement need are supporting demand.

Order bookings in Latin America remained in line with the previous quarters. Compared to the second quarter of 2013, order bookings decreased in Latin America by 31 percent to 3,960 (5,757) vehicles, related to lower order bookings in Brazil and Argentina. During the second quarter of 2013, there were somewhat more attractive subsidies for new vehicle investments in Brazil compared to the start of this year.

In Eurasia, order bookings fell significantly because of the turbulence in the region. Order bookings totalled 760 (1,882) trucks in Eurasia during the second quarter. The downturn was mainly attributable to Russia. In Asia, order bookings improved strongly, both compared to the previous quarter and compared to the second quarter of 2013. The upturn was related to the Middle East and total order bookings in Asia amounted to 5,611 (1,970) units.

In Africa, order bookings were stable compared to the second quarter of 2013 and also compared to the previous quarter. In Oceania, order bookings increased in Australia compared to the second quarter of 2013. Total order bookings in the Africa and Oceania region were 12 percent higher at 1,246 (1,115) units, compared to the second quarter of 2013. Order bookings were also higher compared to the first quarter of 2014.

In light of the trend in demand, Scania plans to increase its production rate at European production units during the autumn. This will imply some new hiring.

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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