SCANIA: DEMAND FOR BUSES AND COACHES SLIGHTLY LOWER IN FIRST 9 MONTHS
Scania report over the first 9 months of this year an increase in net sales by 15 percent to SEK 113,815 million (10,7 billion Euros) but the demand for buses and coaches is slightly lower. Earnings in the first nine months of 2019 rose to SEK 13,889 million (1,3 billion Euros) which gave an operating margin of 12.2 percent.
Higher vehicle and service volume in the truck sector contributed positively, as did currency effects and a favourable market mix. Demand for buses and coaches is slightly lower in the first nine months of 2019 than the year-earlier period, as is demand in the Engines business area mainly related to lower order bookings in Asia. The demand situation is now weaker than before and order bookings for trucks fell by 8 percent in the first nine months of 2019 compared to the year-earlier period. Demand for trucks in Europe has slowed as customers seem currently uncertain about the market development. In Latin America demand is still recovering at a sluggish pace. The uncertainty related to global trade continues to have a negative impact on order bookings in Asia and Eurasia.Service revenue amounted to a record high SEK 21.5 billion (2.02 billion Euros), an increase of 10 percent.
At Busworld the new Scania Citywide was premiered: Scania's first fully electric bus in series production for city traffic and the first model in its new bus and coach generation. “Electrified buses and trucks will play a crucial role in achieving a fossil-free transport system in the longer term”, says Henrik Henriksson, President and CEO of Scania. However he emphasizes that “if we are to have a chance of reaching the Paris Agreement’s goal, solutions involving renewable fuels are required in order to bridge the period up to the cut-off point for a fully electrified transport system. Scania has invested for a long time in order to be able to offer a broad suite of transport and public transport solutions where vehicles operate on renewable fuels.” In an educational effort aimed at Scania’s 52,000 employees on climate change and the company’s sustainability efforts, in September work stopped for an hour at Scania’s operations globally.