Scania: 2013 in review

Scania has released a summary of its 2013 global year-end report, with surging sales, orders and deliveries offset by a drop in net income

Deliveries of Scania trucks and buses climbed by an impressive 19 per cent in 2013, while order bookings grew by 12 per cent and net sales grew by nine per cent.

The figures were released recently in an annual report of the company’s global financial affairs.

Scania AB’s President and CEO, Martin Lundstedt, said the company had performed strongly through 2013, but economic conditions remained challenging.

“Both vehicle and service volume reached record levels, which was offset by the stronger krona and a competitive pricing environment,” he said.

He also underlined that early orders of Euro 6 vehicles – the new European emissions standard that became mandatory for all new trucks from December 31, 2013 – will soften performance into 2014.

“Pre-buys in Europe during 2013 will impact the first half of 2014 while Scania’s assessment is that economic activity in Europe has stabilised and that there is a replacement need,” he said.

“There are good growth opportunities in the longer term 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.”

However, while orders and deliveries surged, the firm posted a seven per cent contraction of net income, its year-on-year earnings per share also falling by seven per cent.

Scania says a number of factors eroded margins throughout the year.

“Negative currency rate effects, as well as a competitive pricing environment, adversely impacted margins,” states Scania’s report.

“Furthermore, Scania has been paying a so-called ‘utilisation fee’ per truck sold in Russia, which lowered earnings.”

In total, Scania delivered 73,611 trucks, 6853 buses and 6783 engines worldwide in 2013. The firm’s global staff reached 40,953 people, up from 38,597 at the close of 2012.

Scania: 2013 in review

Tags