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Scania sees profits and orders plummet

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Scania sees profits and orders plummet
10:25 CEST+02:00
Net profits at Swedish truckmaker Scania plunged 93 percent to 179 million kronor for the first quarter ($21.8 million), the company reported on Monday as orders for new vehicles also took a dive.

The result was close to analysts' forecasts, who predicted a profit of 201 million kronor according to a survey by Dow Jones Newswires.

Scania's net profit for the same period in 2008 was 2.51 billion kronor.

Sales dropped by 28 percent to 15.86 billion kronor and deliveries fell 41 percent to 11,304 units, a company statement said, citing the turbulent economic climate as the reason behind the results.

Scania said it "foresees no change in the demand for vehicles in the coming quarters," its chief executive Leif Östling said in the statement.

"The transport equipment industry is characterized by highly cyclical demand over a 10-year period, and we are now in the downturn," he added.

The truckmaker recently announced 2,000 job losses affecting staff on fixed-term temporary contracts, much less than its Swedish rival Volvo Trucks which has cut 11,000 positions since September and plans to cut 10,000 more.

Volvo, the world's second-biggest truckmaker, on April 24 reported first quarter losses of 4.2 billion kronor.

By 9.50am the price of Scania shares had fallen by 1.75 percent to 84.25 kronor on a Stockholm exchange down by 1.75 percent overall.

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