Scania year-end report January - December 1999

SCANIA YEAR-END REPORT JANUARY - DECEMBER 1999 RESULTS IN BRIEF Fourth quarter of 1999, compared to fourth quarter of 1998 Number of trucks and buses sold: 14,365 (13,922), an increase of 3 percent. Sales: SEK 13,044 m. (12,900) [USD 1,531 m. (1,513)]*. Total operating income: SEK 1,403 m. (1,102) [USD 165 m. (129)], equivalent to a margin of 10.8 (8.5) percent. Full year 1999, compared to full year 1998 Number of trucks and buses sold: 50,414 (49,670), an increase of more than 1 percent. Sales: SEK 47,110 m. (45,312) [USD 5,526 m. (5,315)], an increase of 4 percent. Sales of service-related products rose by 8 percent to SEK 6,945 m. (6,419) [USD 815 m. (753)]. Operating income: SEK 5,045 m. (3,592) [USD 592 m. (421)], an increase of 40 percent, equivalent to a margin of 10.7 (7.9) percent. Income after financial items: SEK 4,500 m. (3,214) [USD 528 m. (377)]. Net income: SEK 3,146 m. (2,250) [USD 369 m. (264)]. Earnings per share: SEK 15.75 (11.25) [USD 1.85 (1.32)]. Earnings per share according to U.S. GAAP: SEK 16.40 (11.20) [USD 1.92 (1.31)]. THE MARKET IN BRIEF Fourth quarter of 1999, compared to fourth quarter of 1998 Order bookings for heavy trucks in western European markets rose by 26 percent. Order bookings in central and eastern Europe and in Asia doubled, compared to the low levels of 1998. Order bookings in Latin America rose, compared to both the third quarter of 1999 and the fourth quarter of 1998. Full year 1999, compared to full year 1998 @ Order bookings for heavy trucks in western European markets rose by 9 percent. @ Order bookings in Asia improved gradually throughout the year, and markets in central and eastern Europe recovered during the second half of 1999. @ In Latin America, economic uncertainty and the devaluation of the Brazilian currency adversely affected demand. @ *Translated solely for the convenience of the reader at an exchange rate of SEK 8.525 = USD 1.00. This report is also available at COMMENT ON 1999 AND OUTLOOK FOR 2000 Earnings rose by 40 percent in 1999, compared to the preceding year, after a period of major changeovers related to the new product range. Sales and production in all of Scania's product areas reached new highs. The forecasted SEK 1.5 billion improvement in operating income was achieved. Productivity rose, and the pace of capital expenditures in industrial operations normalised. Efforts to strengthen the marketing organisation moved forward with continued growth in the sales of service-related products and in the volume of customer financing. On 6 August 1999, Volvo launched a public offer for Scania. The proposed acquisition is subject to review by the European Commission. This process has been extended until late March 2000. During 1999, the total market for heavy trucks in western Europe reached a new record of about 236,000 units, an increase of 14 percent. Despite robust demand, prices remained under pressure. Scania's order bookings were at a high level during most of the year and rose in the fourth quarter, indicating a continued strong western European market during the first part of 2000. During 1999, Scania's market share rose in most western European markets. The weak market in central and eastern Europe and the economic uncertainty caused by the problems in Russia continued during the year. There was a discernible recovery during the second half of 1999. In Asia, too, there was a recovery, especially in Taiwan and South Korea. In Latin America, the Brazilian devaluation early in the year contributed to lower volume and depressed prices. During the fourth quarter, a slight improvement was noted. After the efforts of recent years to strengthen the European service and distribution network, as well as investments in higher production capacity, Scania stands well equipped to meet the demand for both vehicles and service-related products from a continued strong European market. In Latin American operations, Scania implemented a vigorous cost adaptation programme during 1999 to improve its earnings, which is expected to have a further impact in 2000. Overall, Scania's prospects for 2000 are favourable. ------------------------------------------------------------ Please visit for further information The following files are available for download:

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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 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