Scania's profit plummeted 40 percent compared to the second quarter last year. Deliveries fell but orders increased compared to last year. At the same time, the company expects the investment in China to continue to weigh on variable costs for the rest of the year.
It's the largest investment we've made since the 60s, says Christian Levin.
In October, the factory is expected to be finished and by the end of the year, the first vehicles are expected to roll out from the new factory.
It will be very exciting to see how we can actually start utilizing this factory, not just to sell in China but to serve all of Asia and Oceania with tailored vehicles and with short lead times, just as we so successfully do in Latin America and Europe.
Several measures
The evening before the report, Scania owner Traton cut its forecast for the full year 2025. Christian Levin says that it will require several measures during the year for the company not to incur too high costs. Currently, it does not affect jobs in Sweden.
We are using the flexibility mechanisms that we have at our disposal, which so far do not mean that we are laying off permanent staff.
The forecast reduction is motivated by the uncertainty surrounding the Trump administration's tariffs, a weak economic development in Europe, and increasingly greater challenges in Brazil. Traton also expects a significant decline in the truck market in the USA.
Truck manufacturer Scania is affected relatively little by the tariffs, but CEO Christian Levin says that they are instead affected by the uncertainty it creates and that many of their customers are waiting with investments.
Investments are not taking off, and that's of course worrying. As long as this uncertainty persists, I don't think we'll see any upturn in the market, says Christian Levin.
Double currency shock
Scania, which has a large market in Brazil, was instead affected by a double shock on the currency front.
The Brazilian real, which has fallen against all currencies in the world, and then the Swedish krona has risen against all currencies in the world.
Christian Levin says it's impossible to answer the question of when the market will ease again.
It's cyclical. It's up and it's down, but we're holding on and in the long term, we know it will come.
Sophie Gräsberg/TT
Facts: Scania's report
TT
Scania reports an adjusted operating profit of 4.5 billion kronor for the second quarter. This is a profit drop of over 40 percent compared to the second quarter last year.
Orders received were up 6 percent to 20,393 vehicles. Deliveries fell during the quarter by 5 percent to 24,602 vehicles. Scania's net sales fell 10 percent to 49.9 billion kronor during the second quarter.
Traton's figures:
Traton's operating result in the second quarter also falls by 40 percent in annual terms, down to 607 million euros, while sales revenue falls 2 percent to 11.3 billion euros.
Traton also lowered its forecast for the full year 2025 in a profit warning on Thursday evening. Sales growth is now expected to be somewhere between 0 and minus 10 percent - both in terms of revenue and sales volume. Previously, the forecast was between plus 5 and minus 5 percent.
In Traton, in addition to Scania, there are also truck and bus manufacturers MAN, Navistar, and Volkswagen Truck & Bus.
