Preliminary income statement for Scania, 1998

Preliminary income statement for Scania, 1998 At Scania's Board Meeting a decision was taken to provide the following preliminary income statement for the 1998 financial year and an assessment of the prospects for 1999. In response to AB Volvo's acquisition of shares in Scania AB the investment bank Alfred Berg has been retained to advise the Board and the Management. Sales and income The number of invoiced vehicles in 1998 amounted to 49,674 (46,976), an increase of 6 percent over the previous year. The Scania Group's sales increased preliminarily by 14 percent to SEK 45.2 bn (39.7). The estimated operating income increased by 18 percent to SEK 3.6 bn (3.05) and income before taxes is estimated at SEK bn 3.2 (2.75). The operating income of the company's European operations increased considerably to approximately SEK 3.9 bn (2.3). During 1998 the operating margin from European operations increased from 9.3 percent in the first quarter to 12.7 percent in the fourth quarter. The increased volumes recorded in the European operations during the fourth quarter improved operating income. Reflecting Scania' s strategy of increasing vendor leasing programs, an increased proportion of total sales is accounted for as operational leasing, the profit from which is spread over the entire duration of the contract period. The deferred profit from these leases was SEK 170 million in the fourth quarter and SEK 360 million (200) for the full year. This affected the operating margin during the fourth quarter by -1.5 percentage point, while the figure for the whole year was just under -1 percent. The operating income of Scania's Latin American operations was impaired during the fourth quarter by lower volumes and by measures taken to adjust production levels to the current market situation. The order bookings in western Europe continued at a high level during the fourth quarter of 1998 (+10 per cent compared with the corresponding quarter in the previous year), while they shrank in the rest of Europe. In the Far East the market remained low. The market in Latin America continued to weaken during the fourth quarter of 1998. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/01/18/19990118BIT00220/bit0001.pdf Hela bokslutskommunikén