Scania profits higher than expected

Bus and truck maker Scania has reported profits of 2.1 billion kronor for the first quarter, up from 1.7 billion in the same period last year.

Analysts had on average predicted profits of 1.8 billion kronor, according to a survey by Reuters. Turnover rose to 17.2 billion kronor from 13.9 billion, against an expected turnover of 15.6 billion.

Orders, measured in the number of vehicles, rose by 23 percent to 19,015. Deliveries rose by 16 percent to 15,377. Strong demand in Europe is at the root of the healthy order-book, said CEO Leif Östling. Some customers had brought forward orders because of new European environmental regulations coming into force in the autumn.

“This could lead to a lower rate of orders in Europe in the second half of 2006, which would then have an effect on deliveries towards the end of the year and the beginning of 2007,” Östling wrote in the report.

TT/The Local