Summary of the full year 2011
- Operating income fell to Skr 12,398 m. (12,746), and earnings per share rose to Skr 11.78 (11.38)
- Net sales increased by 12 percent to Skr 87,686 m. (78,168)
- The Board of Directors proposes a dividend of Skr 5.00 (5.00) per share
Worse than expected form trucker, ScaniaWednesday, 01 February 2012
Bus and truck manufacturer Scania reported a profit before tax of Skr2.807 million in the fourth quarter of 2011. That compares with profit of 3.776 million in the corresponding periods of 2010. Analysts had on average expected a profit of Skr3.266 million, according to Reuters.
Turnover amounted to Skr22.891 million, compared to Skr22.505million a year earlier.
New orders fell to 15,846 vehicles compared to 21,758 vehicles a year earlier.
The Board proposes a dividend of Skr 5.00 per share, unchanged from the dividend last year.
The company notes that higher vehicle and service volume was offset by a significantly stronger Swedish krona, a higher cost level and a changed market mix.
"The outlook for 2012 is difficult to assess, particularly in Europe in light of the economic-political problems in the euro area," writes Scania CEO Leif Ostling in the year-end report.
He notes that new orders for trucks slowed in the second half of 2011.
"Southern Europe had a low level throughout the second half compared to the first and northern Europe was slightly weaker in the fourth quarter," writes Ostling.
Even in the Middle East orders fell in the second half and reached "very low" in the fourth quarter. In Eurasia, weakened demand, "something" and orders in Latin America declined due to the transition to the so-called Euro-5 vehicles.
Five minutes after the report had been published Scania's shares have fallen by 3.1 percent to SEK 113:60
AdvertisementWhile orders for new trucks reduces, Leif Ostling said that that the average age of the European truck fleet will rise, affecting the demand for service and parts positive.
"This provides a stabilizing effect on Scania's profitability. Demand for service is good even outside Europe, "writes Scania Chief.
Scania has reduced its rate of production which has meant that around 1900 temporary workers have not had their contracts extended.
Get detailed end of year report from Scania here
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