Profits at truckmaker Scania beat expectations

Swedish truckmaker Scania announced a return to profit and a slightly improved outlook on Monday with better-than-expected third quarter results due to the effects of cost cutting measures.

Scania said it had its net profits for the three months ending in September amounted to 278 million kronor ($27.3 million), down 85 percent from a year earlier but well above analyst forecasts for 17 million kronor as compiled by Dow Jones Newswires.

According to previously published figures, Scania lost 150 million kronor in the three months to June when sales fell 40 percent from a year earlier to 14.43 billion kronor.

“The European truck market is characterized by low economic activity but in Scania’s judgement the downturn in western European demand has now levelled off,” the company said in a statement.

“In Latin America, demand remains relatively good. In Asia, a certain recovery is under way,” it added.

Third quarter deliveries fell 44 percent from a year earlier to 9,023 vehicles, it said.

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