Scania Q3 profit rises, adjusts production rate

Source: Supply Chain Digital

Date :24/10/2008 10:46:37

Scania AB, Sweden's second-largest truckmaker, said third quarter profits rose 3.6 percent, driven by higher vehicle volume and increased prices.

Net income rose to SEK1.82 billion, or SEK2.27 a share, from SEK1.75 billion, or SEK2.19, a year earlier. Analysts surveyed by Bloomberg predicted profit of SEK2.07 billion.

Scania said it would adjust its production rate “in light of lower overall order bookings and higher inventories.” The truckmaker will use the flexibility it has with employees on temporary contracts, close to 20 percent of the workforce in the manufacturing organisation.

Commenting, Leif Östling, President and Chief Executive said: “The restructuring of Scania’s European axle and gearbox production is now in its final phase.” He expects Scania to achieve annual savings of SEK300 million with full effect from 2009.

In view of the currently unclear situation about future business conditions, Scania said it would provide no forecast for 2009.