The interim report summarizes the company's performance in the first three quarters of 2008. Key highlights include operating margins reaching an all-time high of 15.8% and EBIT growth of 25%. Revenue and profitability increased due to higher vehicle and service volumes, price increases, and favorable product mix. However, order bookings for trucks have declined 51% in Western Europe and 34% in Central and Eastern Europe. While flexible production has helped, earnings forecasts for 2009 are not provided due to economic uncertainty. The service business continues growing with increased traffic and workshop utilization.
5. High volume
Total deliveries, trucks and buses
Units
24,000
Deliveries +4%
20,000
Delivery times
becoming 16,000
shorter
12,000
8,000
4,000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2004 2005 2006 2007 2008
5
6. Service business is growing
Service revenue and rolling fleet
Units SEK m.
18,000
600,000
Capitalising on Rolling fleet
Service revenue
substantial 16,000
500,000
vehicle 14,000
population 400,000
12,000
10,000
300,000
Increased
prices 8,000
200,000
4,000
100,000
2,000
0
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
Q3
* Rolling 12 months
6
7. Operating income
Vehicles & Services
Strong EBIT growth
due to Volume
Price
– Higher vehicle
and service EBIT increase: Product mix
volume + SEK 2,025 m. 9 mth
– Prices
– Product mix R&D
7
20. Service business is growing
Service revenue and rolling fleet
Units SEK m.
18,000
600,000
Capitalising on Rolling fleet
Service revenue
substantial 16,000
500,000
vehicle 14,000
population 400,000
12,000
10,000
300,000
Increased
prices 8,000
200,000
4,000
100,000
2,000
0
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
Q3
* Rolling 12 months
20
21. Service business is growing
High level of
transport activity
High capacity
utilisation in
workshops
New services
~50% of volume in
captive network
21
22. Outlook
Earnings in 2008 will be higher than 2007
Due to uncertain situation about future
business conditions, Scania provides no
forecast for 2009
Liquidity situation important factor for
transport companies
22