Scania Interim Report January–September 2013

Scania's earnings for the first nine months of 2013 fell to SEK 5,939 m. Higher
vehicle volume and better capacity utilisation had a positive effect.
Summary of the first nine months of 2013

  · Operating income fell to SEK 5,939 m. (6,135), and earnings per share fell
to SEK 5.30 (5.94)
  · Net sales rose by 8 percent to SEK 61,864 m. (57,261)
  · Cash flow amounted to SEK 1,362 m. (2,176) in Vehicles and Services

Comments by Martin Lundstedt, President and CEO:

“Scania's earnings for the first nine months of 2013 fell to SEK 5,939 m. Higher
vehicle volume and better capacity utilisation had a positive effect. The
stronger krona had a negative impact and earnings were also pulled down by a
competitive pricing environment. Order bookings for trucks in Europe continued
to improve during the third quarter. Demand has been supported by customers that
are investing in Euro 5 vehicles before year-end, when the transition to Euro 6
will occur. There is also a replacement need. Scania has a strong position with
its broad engine range and the launch of its second-generation Euro 6 engines.
The company’s market share in Europe has increased during the period, among
other things thanks to its leading position in Euro 6. In Latin America too,
Scania has captured market shares. Order bookings in Latin America remained at a
good level but decreased compared to the high level of the previous quarters.
Order bookings for buses and coaches fell related to Latin America and Asia. In
Engines, order bookings increased in Europe compared to the second quarter,
driven by investments ahead of the transition to the new emission standard in
2014. Scania is continuing its long-term efforts to boost market share in
Services. Service revenue rose by 9 percent in local currency during the third
quarter. Scania has raised its daily production rate in Europe while increasing
flexibility at its production units. There are good growth opportunities and the
expansion of annual technical production capacity towards 120,000 vehicles is
continuing. To strengthen competitiveness, the level of activity related to
development projects remains high, at the same time as Scania is expanding its
sales and service capacity in emerging markets.”
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 38,600 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 2012, net sales totalled SEK 79.6 billion and net income amounted
to SEK 6.6 billion. Scania press releases are available on
www.scania.com (http://www.scania.com/se)