Shares of Scania AB (SVKBY.PK) increased around 5 percent in the morning trade in Stockholm after the Swedish automotive company said its first-quarter order bookings increased significantly from last year. Meanwhile, first-quarter profit declined reflecting lower revenue from the vehicles and services segment. The company also trimmed its full-year dividend.
The stronger Swedish krona and price pressure on trucks pulled down earnings, while higher truck volume and higher capacity utilisation in Latin America had some positive effect, the company noted.
In the first quarter, Scania's net income fell 22 percent to 1.40 billion Swedish kronor or 1.75 kronor per share from last year's 1.79 billion kronor or 2.24 kronor per share. In euro terms, net income was 168 million euros.
Operating income fell 17 percent, and operating margin was 10 percent, lower than last year's 11.5 percent.
Net sales fell 4 percent to 19.34 billion kronor or 2.32 billion euros, from prior-year sales of 20.13 billion kronor.
In the quarter, deliveries increased 4 percent to 16.94 billion kronor. Order bookings climbed 31 percent from last year to 20.79 billion kronor.
According to the company, order bookings for trucks remained at the same level as the end of last year while they increased significantly from last year's first quarter. In Europe, order bookings improved as there is a replacement need, given the low truck deliveries in recent years.
In Latin America, bookings remained at a high level with demand in Brazil and Argentina supported by subsidies. Scania said its performance in both Europe and Brazil has been stronger than the overall market in recent quarters. In Russia, order bookings were at a good level and in the Middle East order bookings improved from a low level. Order bookings for buses and coaches also rose significantly.
Further, the company said its Board of Directors has proposed a dividend of 4.75 kronor per share for the financial year 2012, lower than last year's 5 kronor per share, with May 8 as the record date.
President and CEO Martin Lundstedt said, "In local currencies, service sales increased somewhat in most regions during the quarter. Lower economic activity continued to adversely impact service demand in southern Europe. The stronger Swedish krona and price pressure on vehicles are increasing the focus on efficiency. In the longer term, there are good growth opportunities. Scania will therefore continue to prioritise investments in core development projects and will extend technical production capacity, as well as expanding the sales and services organisation in emerging markets."
In Stockholm, Scania shares are currently trading at 134.30 kronor, up 6.60 kronor or 5.17 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.