Scania (SVKBY.PK) said its first-quarter profit dropped to SEK 1.79 billion or SEK 2.24 per share from last year's SEK 2.51 billion or SEK 3.14 per share.
Net sales were down 3 percent to SEK 20.13 billion from SEK 20.69 billion in the prior-year quarter. Total deliveries decreased 15 percent year-over-year to 16,238 vehicles. Order bookings declined 19 percent to 15,809 from a year ago.
Lower vehicle deliveries and lower capacity utilisation pulled down earnings, as did higher costs for future-related projects, the company noted.
Leif Östling, President and CEO, said,
"...A more favourable market mix had a positive effect, as deliveries in Brazil were supported by some 2,000 Euro 3- vehicles during the first quarter. Total deliveries fell due to a deceleration in demand in late 2011. Scania has adjusted its production rate to the current level of demand. Overall order bookings for trucks during the first quarter of 2012 were in line with the end of last year..."
Further, the Board of Directors proposed a dividend of SEK 5.00 per share, same as last year, for the financial year 2011, with 9 May 2012 as the record date.
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by RTT Staff Writer
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