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SCANIA

Downshift in profits for truckmaker Scania

The Swedish heavy-truck maker Scania, one of the brands owned by Volkswagen, said Tuesday that its first-quarter profit fell by 28 percent owing to weaker demand and high development costs.

Published: 24 April 2012 13:31 CEST
Downshift in profits for truckmaker Scania

Scania posted net profit of 1.8 billion kronor (203 million euros, $268 million), on sales that slipped by three percent to 20.13 billion kronor.

The results were better however than an analyst forecast compiled by Dow Jones Newswires, which had anticipated a net profit of 1.6 billion kronor on

sales of 18.3 billion.

“Lower vehicle deliveries and lower capacity utilisation pulled down earnings, as did higher costs for future-related projects,” a statement quoted Scania chief executive Leif Östling as saying.

Deliveries declined on a 12-month basis by 15 percent to 16,238 vehicles, while orders were 19 percent lower at 15,809 units.

“Total deliveries fell due to a deceleration in demand in late 2011,”Östling explained.

Overall order bookings for trucks during the first quarter of 2012 were in

line with the end of last year. The market in southern Europe is still at a

low level,” he added.

Shares in Scania nonetheless jumped by 4.8 percent in morning trades on the

Stockholm stock exchange, while the market was 2.0 percent higher overall.

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SCANIA

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.

Published: 13 May 2014 12:20 CEST
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.
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