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Sonia profit is up 44% as
Page 17
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demand for heavies rises
With the market growing especially rapidly in Eastern Europe, the truck
giant is aiming to increase its production capaci-y. Dylan Gray reports.
DEMAND FOR vehicles and services is rising, according to Scania, although long lead times are still an issue. However, it predicts continued strong demand for heavy trucks.
In the first six months of the year the Swedish truck giant saw a 14% increase in turnover from the same period in 2006 to €4.3bn (£2.9bn) and a huge 44% growth in net profit to €433m (1292m).
Scania says the main reasons for this are a 39 % rise in order bookings and an 18% increase in deliveries.
A spokesman adds: "The demand for vehicles and services is rising in virtually all markets that Scania operates in and we expect demand kir heavy trucks to remain strong.
"In Europe there is a shortage of transport capacity, with high demand for both new and used trucks. Demand is increasing especially rapidly in central and Eastern Europe, with 80% higher order bookings during the first half of 2007."
Scania has been affected just as other truck manufacturers with high lead times due to the growth in demand. For this reason the company is investing in its production capacity, with the aim of reaching 100,000 vehicles by the end of 2009.
The company states that the increase will be gradual and is aiming to boost its production capacity by 5% during the final months of 2007 to 84,000.
Scania predictscontinued strong growth with good profitability and cash flow; and an annual rise in sales of around 10% during 2007.
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