Scania Interim Report, January–September 2012

Scania's earnings for the first nine months of 2012 amounted to SEK 6,135 m.
Lower vehicle volume, lower capacity utilisation and a higher level of costs
pulled down earnings.
Summary of the first nine months of 2012
• Operating income fell to SEK 6,135 m. (9,657), and earnings per share fell to
SEK 5.94 (9.11)
• Net sales decreased by 12 percent to SEK 57,261 m. (64,795)
• Cash flow amounted to SEK 2,176 m (3,866) in Vehicles and Services

Comments by Martin Lundstedt, President and CEO
“Scania's earnings for the first nine months of 2012 amounted to SEK 6,135 m.
Lower vehicle volume, lower capacity utilisation and a higher level of costs
pulled down earnings. Order bookings for trucks during the third quarter of 2012
decreased compared to the previous quarter. In Europe, the first part of the
third quarter is usually characterised by low activity. However, order bookings
in September continued at the same low level in many markets, affected by lower
economic activity and hesitancy among customers to invest in new vehicles. This
is despite a growing replacement need in Europe, given the low truck deliveries
in recent years. In Brazil, the market has been at a lower level compared to the
previous year due to the transition to Euro 5 and a weaker economy. However,
extensive subsidies had a positive effect on order bookings for trucks at the
end of the quarter. In Russia, demand is at a good level. In Asia, order
bookings were lower than the previous quarters, mainly attributable to a major
order in China during the first half of 2012 and a downturn in the Middle East
during the third quarter. The outlook in the Middle East is uncertain. Order
bookings for buses remained at a low level. Engines noted weaker order bookings
in all regions during the second quarter and the trend continued in the third
quarter. Service demand is generally at a stable level. However, in Europe,
service demand is decreasing, which is partly offset by the ageing vehicle
population. The short-term outlook is very difficult to judge and imposes
stricter demands for volume flexibility and cost control. The strengthening of
the Swedish krona is having a negative impact, as a large proportion of Scania’s
cost base is in Sweden. In the longer term, Scania believes there are good
growth opportunities. Investments in development projects and expansion of
technical production capacity for vehicles continue, along with the expansion of
the sales and service organisation in emerging markets.”

Please see the attached PDF for more information.
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