Truck and bus maker, Scania's earnings in line with forecastsFriday, 21 October 2011
Bus and truck manufacturer Scania reported a profit before tax of Skr2 977 million for the third quarter of 2011. That compares with profit of Skr3.352 million a year ago.
Analysts had on average expected a profit of Skr3.017 million, according to Reuters consensus.
AdvertisementSales amounted to Skr21.130 million, compared to Skr18.558 billion a year earlier.
Order intake, measured in number of truck and bus chassis, up 22 percent to 18,894 and deliveries rose 23 percent to 18 685
At the end of the quarter, demand for vehicles slowed, mainly in southern Europe but also in the Middle East, writes CEO Leif Ostling of the interim report.
"Customers have been reluctant to place orders, mainly due to expectations of lower economic activity," he writes.
Scania announced a few weeks ago that the company from November to reduce the daily rate of production by 10 -15 percent, which will affect about 900 temporary employees who would not have their contracts extended.
"In light of the uncertain economic situation, Scania has a readiness to take action if demand deteriorates further," writes Ostling.
Scania Chief, however, points to the existence of the needs for the European market to need some support mechanism as low truck deliveries in both 2009 and 2010 means that the fleet in the region has an average relatively high age.
"In Brazil there is uncertainty about demand in the first half of 2012 due to the introduction of Euro 5 emission standards," writes Ostling.
When it comes to service, there is a very high demand for a high level in all regions, according to Scania Chief.
Scania shares were shortly after the report published has risen by 1.8 percent to Skr102:50.
By Scancomark.se Team
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