Scania recently revealed that it set a new record for the first six months of the year with SEK 77.3 billion ($11.8 billion AUD) in net sales, a 17% increase over the same period in 2018. The company also had a 12% higher operating margin compared to 2018, which resulted in its operating income rising from SEK 6.95 billion ($1.06 billion AUD) in 2018 to SEK 9.44 billion ($1.44 billion AUD) in 2019.
“Higher vehicle and service volume, currency effects and a more favourable market mix contributed positively to earnings,” says Henrik Henriksson, president and CEO of Scania. “The phase-out of double product ranges also improved the cost situation in production, even though some increased costs remain, related to the new truck generation and to handling the backlog in customer deliveries from previous flow disruptions. The measures put in place to normalise the higher cost situation are continuing and the global production system is adapting to a more normal situation.”
Orders Down, Deliveries Up
Although order bookings in the trucks and buses category were down 7% (52,503 units in 2018 compared to 48,789 unit so far in 2019), deliveries rose from 46,778 to 51,524 year over year. In the second quarter (compared to Q2 2018), orders rose by 71% in Latin America, largely driven by Brazil, and 16% in Africa and Oceania, which was the result of increased orders in Morocco. On the other hand, orders fell by 2% in Eurasia and 33% in Asia in the second quarter. Scania says the drop in Eurasia was due to lower orders in Russia, while the drop in Asia was caused by lower demand in the Middle East.
“With just over 19.4% of the European market, Scania takes the lead in the registration statistics for trucks over 16 tonnes in the first half of 2019. The success is mainly explained by the good reception of Scania’s new truck generation,” says Henriksson. “Scania delivers a clear customer benefit and during the year Scania’s R 450 won the prestigious Green Truck Award 2019 as the most fuel-efficient and sustainable commercial vehicle in its class. Consequently, Scania has won the award for the third year in a row.”