Scania posts record sales

Swedish truck manufacturer Scania has released its financial summary for 2014, a year which saw it post record net sales of $A14.3 billion – an increase of six per cent over the previous year.

Global order bookings for Scania trucks and buses were up three per cent to 82,984 units, while deliveries fell by one per cent, to 79,782.

Operating income for Scania Financial Services streaked ahead to $A158 million – growth of 41 per cent – while net income for the company fell by three per cent, to $A936 million.

The President and CEO of Scania, Martin Lundstedt (pictured), said that despite the prevalence of economic uncertainty in many parts of the world, there were plenty of positives to draw from the company's recent performance.

"Scania’s net sales rose to a record level of SEK 92 billion and earnings for the full year 2014 increased to SEK 8721 million," he said.

"Record service volume, record earnings in Financial Services and positive currency rate effects were partly offset by a weaker market mix. Total order bookings for trucks increased during the fourth quarter, compared to the previous quarter. The increase was primarily related to an upturn in Europe, which is in line with the seasonal pattern in the European market.

"Scania has strengthened its position in the European market with increased market share compared to 2013, among other things through a leading Euro 6 range and a broad range of engines for alternative fuels.

"Order bookings in Latin America decreased. Low economic activity and uncertainty about the subsidised financing programme in Brazil had a negative impact. In Asia, order bookings decreased compared to the previous quarter, related to the Middle East. Order bookings in Russia held up but the outlook for the region is uncertain.

"In buses and coaches, order bookings were sequentially higher, driven by Asia. In engines, order bookings and deliveries reached all-time high levels.

"Scania is continuing its long-term efforts to boost market share in Services and revenue increased by eight per cent to a record SEK 18.8 billion during 2014. Financial Services reported record earnings, with operating income of more than SEK 1 billion.

Last year saw Volkswagen AG acquire full control of Scania, which now sits alongside German manufacturer MAN under the VW umbrella. Mr Lundstedt said collaboration with MAN was continuing apace.

"In gearboxes, Scania has initiated extensive cooperation with MAN, which will mean a stronger product offering and generate significant synergies in the longer term," he said.

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