July 31, 2019: Scania AB, a Swedish heavy trucks and buses maker, announced a 17 percent increase in its gross sales at SEK 77.3 billion in the initial six months of 2019. The brand's running income elevated by 36 percent to SEK 9,444 million at the beginning of the current year as compared to SEK 6,950 million in the equivalent period year ago, as per brand's interim summary January-June 2019.
President and CEO, Henrik Henriksson stated that more powerful vehicle and service volume, currency impacts, and a more approving market mix contributed confidently to earnings. He added, "The phase-out of double product ranges also improved the cost situation in production, even though some increased costs remain, related to the new truck generation and to handling the backlog in customer deliveries from previous flow disruptions."
During the opening half of 2019, group net sales raised by 17 percent to SEK 77,271 million during the session under survey as against 66,228 million in H1, 2018. There is a 10 percent increase in total vehicles deliveries. The CEO further stated that the standards put in place to normalize the more expensive cost situation are lasting, and the global production system is adjusting to a more common condition.
The report highlighted that Scania took the lead in the registration statistics for heavy trucks over 16 tonnes in the initial half of 2019 with merely over 19.4 percent of the European market. Henriksson said, "The success is mainly explained by the good reception of Scania's new truck generation." The demand for buses and trucks remained robust in most regions. However, total vehicle order bookings dropped by 7 percent to 48,789 units in contrast to 52,503 units in the initial half of 2018.