Slight profit fall at Scania

Swedish truck and bus maker Scania has reported pre-tax profits of 1.15 billion kronor for the third quarter of 2005. This compares to a profit of 1.31 billion kronor in the same period in 2004.

Turnover increased to 14.21 billion kronor from 13.32 billion last year.

“Based on Scania’s order books in the second and third quarters, and with the rate of production we have today, our judgment is that this year’s results will be somewhat better than last year’s,” CEO Leif Östling writes in the company’s report.

Orders for trucks and buses rose to 13,455 during the third quarter. In the same quarter last year, this figure was at 13.311. Deliveries fell from 12,668 to 12,226.

The company’s shares fell immediately after the report was released.

TT/The Local


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.