Scania Interim Report January-September 2008

- Operating margin rose to 15.8 (14.1) percent and net margin increased to 11.1 (9.8) percent
- Net sales rose by 11 percent to SEK 66,319 m. (59,947)
- Service revenue continued to show strong growth, +8 percent
- Earnings per share amounted to SEK 9.21 (7.31)
- The forecast of higher earnings in 2008 than in 2007 remains unchanged
- Scania is adjusting its production rate due to lower order bookings

Comments by Leif Östling, President and CEO
“Scania’s earnings were strong during the first nine months of 2008, primarily driven by higher vehicle volume and increased prices. Sales of service-related products continued at a high level, with revenue increasing by 8 per cent. Due to uncertainty about future business conditions as well as liquidity shortages, customers in Europe have become increasingly cautious about placing new orders. Order bookings decreased in Europe including Russia but remained strong in Latin America and Asia. In light of lower overall order bookings and higher inventories, Scania will now adjust its production rate accordingly. Scania will use the flexibility it has with employees on temporary contracts, today close to 20 percent of the workforce in the manufacturing organisation. The restructuring of Scania’s European axle and gearbox production is now in its final phase, and together with the earlier transfer of the central parts warehouse, Scania will achieve annual savings of SEK 300 m. with full effect from 2009. Since early this year, Scania has had one common global product range, which provides increased flexibility in production of vehicles for the approximately 100 markets where Scania operates. The long-term outlook remains good, with an increasing need for transport services. Our forecast of higher earnings in 2008 than in 2007 remains unchanged. In view of the currently unclear situation about future business conditions, Scania is providing no forecast for 2009.”

Stina Thorman
Investor Relations
tel. +46 8 553 837 16
mobile tel. +46 70 518 37 16

Erik Ljungberg
Corporate Relations
tel. +46 8 553 835 57
mobile tel. +46 73 988 35 57

About Us

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 nearlySEK 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 ofVolkswagen Truck & Bus GmbH. For more information visit www.scania.com.

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