Scania’s good start to 2014
In its interim report from January to March 2014, Scania’s operating income rose to £205.6m/SEK2,257m (2013: £176.1m/SEK1,933m) and earnings per share rose to £0.2/SEK1.95 (2013: £0.16/SEK1.75). Net sales rose 9% to £1,925.3m/SEK21,126m (2013: £1,762.6m/SEK19,341m). Cash flow amounted to £66.5m/SEK730m (2013: £8m/SEK-88m). Order bookings for buses and coaches were lower than in the same quarter of last year, among other things because it received large orders in Russia and Asia last year. Its total order bookings for PCVs decreased by 22% to 1,995 (2,551) units during the first quarter of 2014 compared to the corresponding period of 2013. Owing to significant overcapacity in its city bus operations, Scania has introduced a restructuring programme aimed at ensuring profitability, which is expected to provide an annual cost saving of £6.4m/SEK70m. In Europe, order bookings for buses and coaches amounted to 392 units (2013: 261 units). Scania’s bus and coach deliveries totaled 1,379 units (2013: 1,383 units) during the first three months of 2014. In Europe, deliveries increased by 60% compared to the first quarter of 2013. Net sales of PCVs rose 5% to £127.6m/SEK1,400m (£121.3m/SEK1,331m) during the first quarter of 2014.
Scania has signed an agreement with Ghana’s Ministry of Transport to supply buses and equipment for the Bus Rapid Transit (BRT) public transport system under construction in the country’s capital Accra.
President and CEO, Martin Lundstedt, said, ‘The improved economic situation in Europe together with the replacement need means that the underlying trend in demand is positive. Order bookings for buses and coaches rose in Europe, while they fell in Latin America and Eurasia. The trend in demand in early 2014 indicates a continued high level of vehicle and service volume. There are also good growth opportunities in the longer term and the expansion of annual technical production capacity towards 120,000 vehicles is continuing.’