Scania Year-end Report, January–December 2012

  Scania Year-end Report, January–December 2012

Scania's earnings for the full year 2012 amounted to SEK 8,300 m. Lower
vehicle volume, lower capacity utilisation and a higher level of costs pulled
down earnings. Order bookings for trucks rose during the fourth quarter of
2012.

Business Wire

SÖDERTÄLJE, Sweden -- January 30, 2013

Regulatory News:

Summary of the full year 2012

• Operating income fell to SEK 8,300 m. (12,398), and earnings per share fell
to SEK 8.31 (11.78)

• Net sales decreased by 9 percent to SEK 79,603 m. (87,686)

• Cash flow amounted to SEK 3,025 m (6,970) in Vehicles and Services

• The Board of Directors proposes a dividend of SEK 4.75 (5.00) per share.

Comments by Martin Lundstedt, President and CEO

“Scania's earnings for the full year 2012 amounted to SEK 8,300 m. Lower
vehicle volume, lower capacity utilisation and a higher level of costs pulled
down earnings. Order bookings for trucks rose during the fourth quarter of
2012. The upturn was driven by Latin America and order bookings were
exceptionally strong in Brazil, where extensive subsidies impacted demand
positively. Order bookings in Europe remained at a low level. Customers are
hesitant about investing in new vehicles in view of the uncertain economic
climate. Meanwhile, there is a replacement need, given the low truck
deliveries in recent years. The coming transition to Euro 6 emission standards
may also provide some support to demand. In Russia, order bookings were at a
good level. Order bookings in Asia decreased compared to the previous quarter,
mainly due to markets in the Middle East. Order bookings for buses remained at
a low level, with an upturn in Europe and a downturn in Latin America compared
to the third quarter. Order bookings for engines improved compared to the very
low level in the third quarter. Service sales are generally at a stable level
with increased demand in several regions outside Europe during the full year
2012. Lower economic activity is adversely impacting service demand in
southern Europe. Given low demand for vehicles in Europe and the Middle East,
the daily production rate is reduced by about 15 percent in Europe in the
beginning of the first quarter of 2013 compared to the end of 2012. A total of
about 700 personnel on hire have been affected. An adjustment of the general
cost level to lower demand is also under way. Looking ahead, there are good
growth opportunities. Therefore, Scania will continue to prioritise
investments in core development projects and will expand the sales and
services organisation in emerging markets.”

Please see PDF for more information:
http://mb.cision.com/Main/209/9362799/86551.pdf

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
37,500 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 2011, net sales totalled SEK 87.7
billion and net income amounted to SEK 9.4 billion. Scania press releases are
available on www.scania.com

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Contact:

Scania
+46 8 55 38 10 00
http://www.scania.com
or
Hans-Åke Danielsson
Press Manager
+46 (0) 70 346 88 11
+46 (0) 8 553 85 662
hans-ake.danielsson@scania.com