Scania Interim Report January–September 2013

Scania's earnings for the first nine months of 2013 fell to SEK 5,939 m. Higher vehicle volume and better capacity utilisation had a positive effect.

Summary of the first nine months of 2013

• Operating income fell to SEK 5,939 m. (6,135), and earnings per share fell to SEK 5.30 (5.94)
• Net sales rose by 8 percent to SEK 61,864 m. (57,261)
• Cash flow amounted to SEK 1,362 m. (2,176) in Vehicles and Services

Comments by Martin Lundstedt, President and CEO:

“Scania's earnings for the first nine months of 2013 fell to SEK 5,939 m. Higher vehicle volume and better capacity utilisation had a positive effect. The stronger krona had a negative impact and earnings were also pulled down by a competitive pricing environment. Order bookings for trucks in Europe continued to improve during the third quarter. Demand has been supported by customers that are investing in Euro 5 vehicles before year-end, when the transition to Euro 6 will occur. There is also a replacement need. Scania has a strong position with its broad engine range and the launch of its second-generation Euro 6 engines. The company’s market share in Europe has increased during the period, among other things thanks to its leading position in Euro 6. In Latin America too, Scania has captured market shares. Order bookings in Latin America remained at a good level but decreased compared to the high level of the previous quarters. Order bookings for buses and coaches fell related to Latin America and Asia. In Engines, order bookings increased in Europe compared to the second quarter, driven by investments ahead of the transition to the new emission standard in 2014. Scania is continuing its long-term efforts to boost market share in Services. Service revenue rose by 9 percent in local currency during the third quarter. Scania has raised its daily production rate in Europe while increasing flexibility at its production units. There are good growth opportunities and the expansion of annual technical production capacity towards 120,000 vehicles is continuing. To strengthen competitiveness, the level of activity related to development projects remains high, at the same time as Scania is expanding its sales and service capacity in emerging markets.”

Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. Service-related products account for a growing proportion of the company’s operations, assuring Scania customers of cost-effective transport solutions and maximum uptime Scania also offers financial services. Employing some 38,600 people, the company operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2012, net sales totalled SEK 79.6 billion and net income amounted to SEK 6.6 billion. Scania press releases are available on www.scania.com

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