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Scania reports sales boost

Swedish truck manufacturer, Scania, has confirmed that net sales rose to a record high SEK 58.7 billion ($9 billion) for the first half of 2017, an increase of 17 per cent compared to last year.

Scania President and CEO, Henrik Henriksson, said the company, "delivered a very strong performance thanks to strong demand for the new truck range and a continued positive trend in services", despite significant investments and high production costs for double product ranges.

“Order bookings for trucks rose by 29 per cent compared to the same period last year,” said Henriksson.

“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.

“Order bookings in buses and coaches remained strong overall but fell slightly compared to the same period in 2016.

“In the business area, engines, the demand trend is positive in all three segments, industrial, marine and power generation.

“Service revenue amounted to a record high SEK 11.7 billion ($1.8 billion), an increase of 12 per cent. 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 SEK 520 million ($80 million) and credit losses remain at low levels.”

Scania Australia has reported that it delivered 443 trucks to the Australian market between January-June 2017, which was an increase of 65 per cent on the same period last year.

“In global terms, our strong first half was driven by demand across Europe for the New Truck Generation we launched late last year. Demand is very strong across all markets there.

“In Australia, we are continuing with the very successful P, G and R-series cabs that we have had on the market for a while that have defined themselves with extremely impressive levels of reliability and durability.

“In addition, we are offering customers many tailored solutions and systems in order to allow them to increase their asset utilisation in the most efficient manner.

“This starts with fuel-efficient engineering and continues with driver efficiency and servicing efficiency delivering maximum uptime. All of this is aimed at boosting the profitability of our customers.”

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