Swedish commercial vehicle manufacturer, Scania, has smashed records in its latest financial report.
Scania President and CEO, Henrik Henriksson, said net sales hit a record SEK 77.3 billion ($11.7 billion AUD) in the first six months of 2019, an increase of 17 per cent year—on-year.
He added that earnings rose to a new all-time high of SEK 9,444 million ($1.4 million) – providing an operating margin of 12.2 per cent.
“Higher vehicle and service volume, currency effects and a more favourable market mix contributed positively to earnings,” said Henriksson.
“The phase-out of double product ranges also improved the cost situation in production, even though some increased costs remain, related to the new truck generation and to handling the backlog in customer deliveries from previous flow disruptions.
“The measures put in place to normalise the higher cost situation are continuing and the global production system is adapting to a more normal situation.
“Demand for trucks in Europe remains strong. In Latin America, the demand trend is reflected by the continuing recovery in Brazil. Demand in Eurasia was impacted negatively by a slowdown in Russia.”
Henriksson said order bookings fell in Asia year-on-year, mainly in the Middle East. “Demand for buses and coaches slowed somewhat due to lower order intake in the Middle East,” he said. “In the Engines business area, demand fell slightly compared to the previous year.”
There is still high capacity utilisation in customers’ vehicle fleets, according to Henriksson, and service revenue amounted to a record high SEK 14.3 billion ($2.1 billion AUD) during the first half of 2019, an increase of nine per cent.
Financial Services also reported an operating income of SEK 737 million ($112 million AUD).
“With just over 19.4 per cent of the European market, Scania takes the lead in the registration statistics for trucks over 16 tonnes in the first half of 2019,” said Henriksson. “The success is mainly explained by the good reception of Scania’s new truck generation. Scania delivers a clear customer benefit and during the year Scania’s R 450 won the prestigious Green Truck Award 2019 as the most fuel-efficient and sustainable commercial vehicle in its class. Consequently, Scania has won the award for the third year in a row.”