Correction: Scania Year-end Report January-December 2017
Scania’s net sales rose to a record high SEK 119.7 billion, an increase of 15 percent compared to the previous year. Truck deliveries reached an all-time-high and demand for our new truck range was good. Higher vehicle and service volume impacted earnings positively, offsetting higher production costs for running double product ranges, constraints in the supply chain and an unfavourable market mix.
Summary of the full year 2017
- Operating income, excluding items affecting comparability, amounted to SEK 12,434 m. (10,124)
- Operating income, amounted to SEK 12,434 m. (6,324)
- Net sales increased by 15 percent to SEK 119,713 m. (103,927)
- Cash flow amounted to SEK 5,701 m. (3,427) in Vehicles and Services
Comments by Henrik Henriksson, President and CEO
“Scania’s net sales rose to a record high SEK 119.7 billion, an increase of 15 percent compared to the previous year. Truck deliveries reached an all-time-high and demand for our new truck range was good. Higher vehicle and service volume impacted earnings positively, offsetting higher production costs for running double product ranges, constraints in the supply chain and an unfavourable market mix. Operating income in 2017 amounted to SEK 12.4 billion, which gave an operating margin of 10.4 percent. In 2017, vehicle orders surpassed the level of 100,000 for the first time due to the new truck generation and our global reach. Order bookings for trucks rose by 30 percent compared to the previous year. The strong demand for trucks continued in large parts of Europe. In Eurasia, Russia’s strong recovery is continuing. The trend in Latin America is positive with continued good demand in Argentina and a slight improvement in Brazil. In Asia, demand mainly increased in Iran and China. Order bookings in Buses and Coaches increased by 11 percent, mainly related to Russia and Iran. In the business area Engines, order bookings were strong in all segments. Growth in service volume continued and revenue amounted to a record high SEK 23.7 billion, an increase of 10 percent (8 percent in local currencies). With more than 300,000 connected vehicles in the fleet, Scania is able to continually improve its customer offering with increasingly efficient services for improved profitability. Financial Services reported its highest ever operating income of SEK 1.3 billion and credit losses remain at low levels. The introduction of the new truck generation is continuing. With the launch of trucks for long-haulage, construction and most recently trucks for urban traffic, Scania has unveiled all the products in the new truck family. The new fuel-efficient vehicles offer enhanced drivability, improved safety, ergonomics, comfort and even better overall economy. In 2017, more than 13,000 trucks were delivered from Scania’s new truck range. With an average reduction in fuel consumption of over five percent per vehicle, this will provide total estimated savings of more than 30,000 tonnes in global carbon emissions. During the fourth quarter, Scania also introduced a six-cylinder 13-litre gas engine specifically designed for long-haulage and unveiled its new Scania Citywide Low Floor bus, which is fully electrically-powered.”
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Scania is a world leading provider of transport solutions. Together with our partners and customers we are driving the shift towards a sustainable transport system. In 2016, we delivered 73,100 trucks, 8,300 buses as well as 7,800 industrial and marine engines to our customers. Net sales totalled nearly SEK 104 billion, of which about 20 percent were services-related. Founded in 1891, Scania now operates in more than 100 countries and employs some 46,000 people. Research and development are concentrated in Sweden, with branches in Brazil and India. Production takes place in Europe, Latin America and Asia, with regional production centres in Africa, Asia and Eurasia. Scania is part of Volkswagen Truck & Bus GmbH. For more information visit www.scania.com.