Truckmaker Scania posts surprise Q2 results

Swedish truckmaker Scania reported unexpectedly strong second-quarter results on Friday as the auto industry rebounded from a disastrous 2009, when the global economic downturn savaged demand.

Truckmaker Scania posts surprise Q2 results

The third quarter should be as good as the second, added the company, which is 46 percent owned by Volkswagen, Europe’s largest automaker.

For the three months to June, Scania posted a net profit of 2.37 billion kronor ($325 million), more than reversing a loss of 150 million kronor 12 months earlier, as sales jumped 43 percent to 20.6 billion kronor. Analysts polled by Dow Jones Newswires expected a net profit of 1.96 billion kronor on sales of 19.23 billion kronor.

The heavy truck sector suffered very badly in the global economic slump,

with orders plummeting. Germany’s Daimler and Sweden’s Volvo, which dominate the market along with Germany’s MAN (Maschinenfabrik Augsburg-Nürnberg), which attempted a hostile takeover of Scania four years ago, recently reported better-than-expected earnings as they also benefited from the recovery.

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Volkswagen gets shares to take over Scania

Volkswagen, Europe's biggest carmaker, was set to take full control of Swedish truck manufacturer Scania on Tuesday after a small but crucial shareholder agreed to sell its shares.

Volkswagen gets shares to take over Scania
Swedish pension fund Alecta previously held out for a higher share price but agreed to sell its 2.04-percent stake in Scania, paving the way for Volkswagen to acquire full control the company.
On April 30, the German car giant said it lacked less than two percent more shares to reach its 90 percent goal, and thereby force the sale of the remaining shares.
"After new discussions with Volkswagen we have concluded that there will be no increase in their offer," Alecta said in a statement, referring to Volkswagen's refusal to pay more than 200 kronor ($30.5) per share.
In February, Volkswagen offered €6.7 billion ($9.3 billion) to acquire the nearly 40 percent of Scania it did not already own and to strengthen its position against its German competitors Daimler and the Swedish truck maker Volvo.
Scania's board of directors recommended shareholders not to part with shares at the price offered.
The offer expired on April 25th. However, confident that shareholders could be won over, Volkswagen extended its offer to May 16.
The German auto giant already owns truck and bus-maker MAN and bought into Scania in 2000.
It had previously said that it could make annual savings of €650 million through economies of scale by taking full control of the Swedish company.
The takeover is just the latest to hit Sweden's beleaguered vehicle manufacturing sector which has seen Chinese takeovers of the once iconic car brands Saab and Volvo.
Volvo Trucks announced more than 4,000 job cuts over the last six months and a voluntary redundancy scheme aimed to cut costs and increase profitability.