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Scania Q3 Profit Climbs On Strong Deliveries; Order Bookings Down

Swedish commercial vehicles manufacturer Scania AB (SVKBY.PK), affiliated to German automaker Volkswagen Group, reported Thursday that its third-quarter net income climbed 26 percent to 2.20 billion Swedish kronor from last year's 1.74 billion kronor.

Income before taxes grew 24 percent from last year to 3.11 billion kronor, and operating income improved 22 percent to 3.20 billion kronor. Operating margin was 9.9 percent, up from 9.2 percent a year ago.

Net sales, Scania Group, grew 14 percent to 32.45 billion kronor from 28.57 billion kronor a year earlier.

Third-quarter deliveries improved 7 percent to 21,861 units, while order bookings declined 13 percent to 19,986 units.

Nine-month order bookings for trucks fell 7 percent. Demand for trucks in Europe remains at a good level. In Latin America, the demand trend is reflected by the slow recovery in Brazil. There is currently uncertainty related to global trade. In the Middle East, demand has fallen drastically in Iran and Turkey, causing both cancelled orders and hampering new order intake.

Overall order bookings in the Asia region were also negatively impacted by a slowdown in China. Demand in Eurasia continues to develop positively, mainly due to Russia despite its uncertainties.

Henrik Henriksson, President and CEO, said, "Demand for the new truck range remained strong and the trend in services is positive."

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