Scania provides a business update

  Scania provides a business update

Business Wire

SÖDERTÄLJE, Sweden -- March 18, 2014

Regulatory News:

In the statement of the Independent Committee of the Board of Directors of
Scania, published on March 18, Scania provided a business update.

Total truck orders for the first two months of 2014 are at a comparable level
to the same period in 2013.

In Europe, stabilised economic activity, positive performance indicators in
the Financial Services segment combined with higher prices for used trucks as
well as the overall need for replacement indicate a positive outlook for
Scania in 2014. In the first two months of 2014, Scania increased its European
market share to 14.9 percent compared to 14.7 percent in the corresponding
period of 2013.

Order bookings in Latin America remain at the same levels as of the fourth
quarter of 2013, while stronger orders compared to the previous year have been
recorded in Eurasia, Africa and Oceania.

In 2013, Scania achieved strong volume in vehicle deliveries and services
sales. The year-to-date trend in order bookings indicates that 2014 could mark
another year of similarly high vehicle and services volume. However, at the
same time, the SEK has strengthened, primarily against several of the emerging
market currencies which adversely impacts Scania´s financial performance.

In the last years, Scania has made significant investments in R&D to
strengthen its product offering. Among the projects is a new truck cab that
will be introduced in the market within the coming years. The new cab will
provide an enhanced customer value, further fuel consumption savings as well
as notable expected cost savings per cab manufactured compared to the current
product range.

At Scania´s Capital Markets Day in 2013, the policy ensuring that any
cooperation with Volkswagen is subject to corporate benefit for Scania and is
handled according to the arm’s length principle was presented, along with the
areas of potential synergies, such as axles, gearboxes, hybrid, purchasing
etc. Scania and MAN currently have over 100 initiatives in these areas.
However, the benefits for Scania from synergies in the financial year 2014
will be limited.

Scania expects operating margins to improve over the coming years, supported
by GDP-growth, current investment programme and the development of Scania´s
services business, which have substantially higher gross margin compared to
new vehicles. For Return on Capital Employed related to Vehicles and Services
the objective is 40 percent and for Financial Services, the objective is in
the excess of 10 percent for Return on Equity, as stated on the Capital
Markets Day 2013.

Scania will publish the Interim Report for January-March 2014 on 11 April,
earlier than previously communicated. Scania’s AGM will be moved from 7 May to
a date in June.

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

This information was brought to you by Cision http://news.cision.com

Contact:

Scania
Erik Ljungberg, +46 8553835 57
Senior Vice President, Corporate Relations
 
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