Scania reports sales increase as recovery continues
28 July 2021
Company highlights “strained situation” with components shortage.
Scania said its recovery has continued during the second quarter of 2021 with both order intake and deliveries rising sharply compared to the previous year.
Summarising the first six months of 2021 the company said net sales increased by 28% to SEK 74,776 m. (58,469 in the same period last year), operating income increased by 246% to SEK 9,733 m. (2,813) cash flow amounted to SEK 3,661 m. (1,867) in Vehicles and Services, in the second quarter of 2021, net sales increased by 54% to SEK 39,068 m. (25,418) and operating income increased to SEK 5,076 m. (-192).
Christian Levin, Scania’s President and CEO, said “The recovery has continued during the second quarter of 2021 and both order intake and deliveries rose sharply compared to the previous year. Scania delivered strong earnings with an operating margin of 13.0 percent, both in the second quarter and in the first half of 2021.”
Scania said it has managed to avoid unplanned production stoppages also during the second quarter, despite a “very strained situation with a shortage of components in the supply chain”.
It added that the collaboration among suppliers, employees and the trade unions has been successful and thanks to a good dialogue with our customers, the company said it found solutions to minimise the negative impact on deliveries to them.
“Unfortunately, we do not expect the shortage of semiconductors to end in the short term but it is something we have to continue to deal with, “the company added.
In a statement the company said:“We see that our customers’ transport activity is high, both from measuring operating data from connected vehicles as well as in the order books for trucks. In the global bus and coach market, the low level of activity continues due to the pandemic and it is reflected in demand for tourist buses and coaches.
“In Power Solutions, demand is still high. The service business is continuing to grow and Scania has managed to keep the majority of workshops open for our customers during both the second and third waves of the pandemic. In Financial Services, the trend in the number of new financed vehicles is positive and also as regards our customers’ ability to pay.
“We have passed a milestone in the second quarter with more than 500,000 connected vehicles. The majority of Scania’s vehicle fleet rolling in around 100 markets is now connected. Data gathered from such a large vehicle population provides a valuable insight into customer behaviour and enables analysis of our products in operation.
“This information is crucial for Scania’s ability to deliver sustainable transport solutions, not least because we can sharpen our service offering to customers, helping them to reduce their carbon emissions. We can also monitor the vehicles based on engine or fuel categories. In this way, we follow up Scania’s Science Based Targets – and our customers can also follow up their own climate targets.
“Step by step, we are making new advances with regard to sustainable transport. We have communicated to our customers that a brand new, even more fuel-efficient platform for combustion engines is coming in the near future. To focus on energy efficiency in conventional powertrains and increase the share of biofuels, while we intensify sales of electric vehicles is the way forward for achieving our climate targets. The rollout of Scania’s fully-electric trucks is ongoing and we have now integrated our production of electric vehicles on the same assembly lines as the combustion engine vehicles.”