Weak demand in certain parts of Europe and limitations in order intake in Latin America – to secure quality in new software platforms – explain the setback in order intake, according to CEO Christian Levin.
The Latin American brake is now removed, according to the Scania chief:
We have reopened the books. I think the outlook looks good.
Wants to see multiple rate cuts
Union reports that major owner Volkswagen (VW) will close factories, lay off tens of thousands of employees, and cut wages are taken with calm. Scania operates in a different part of the vehicle industry in terms of both products and geographic exposure.
It looks good in Latin America and has stabilized in Europe.
Vehicle fleets must be renewed and the service business – where Scania sells repairs, maintenance, financing, and insurance – is growing.
Quick rate cuts – preferably with double steps of 0.50 percentage points at a time from the Swedish Central Bank's side – are on the wish list.
Preferably one and two times, says Levin.
He is also calling for investments in charging infrastructure, more network capacity, and the abolition of "subsidies for fossil fuels" to boost electrification.
China's weak growth and the increased risk of trade wars are two concerns.
We are not so dependent on China in 2025, but when we open our factory there at the end of 2025, we would like to see China come back in 2026.
We hope in every way that the trend that has been in recent years is broken, so that we get to see more (free trade). How it is affected by one or another candidate cannot be known, he says about the risk that former President Donald Trump – with his threats of new high tariffs – wins the US election next week.
"Very close" to Northvolt
Scania is participating in the talks about battery manufacturer Northvolt's financial problems, according to Levin.
Of course, we are part of the discussions, as we always are when a supplier gets into trouble. We are looking at how we can best help them.
According to Levin, Northvolt has delivered the battery cells Scania needs after adjusting its delivery plans in the spring.
In relation to what we have agreed on.
We are very close to them industrially and are helping with the ramp-up.
Södertälje-based Scania reports an adjusted operating profit of SEK 6.8 billion for the third quarter of the year. This is an increase of 24 percent compared to the profit of SEK 5.5 billion during the corresponding quarter a year earlier.
Net sales increased by 2 percent and landed at SEK 48.2 billion. Vehicle deliveries also increased by 2 percent to 21,757 vehicles.
But order intake went in the wrong direction and fell by 26 percent to 17,008 vehicles, of which 169 were so-called zero-emission vehicles. During the corresponding quarter last year, the number of zero-emission vehicles was 331 units.
Scania's German parent company Traton – part of the Volkswagen Group – has presented a so-called reversed profit warning ahead of the quarterly report, flagging a better operating result than expected.
In addition to Scania, Traton also includes the truck and bus manufacturers MAN, Navistar, and Volkswagen Truck & Bus.
