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Scania comes back strong in challenging year

After a difficult start to 2020 as a result of the global pandemic, Scania came back firing, reporting a 55 per cent increase in truck orders in the final quarter.

“The year 2020 was dominated by the pandemic and we fought hard to support our customers with services and parts to ensure that they could keep their businesses going. Naturally, our priority was also to manage the operational and financial impacts on our own business as we faced fluctuations in demand and disruptions in the supply chain as a result of COVID-19,” Henrik Henriksson, Scania President and CEO.

During what was a turbulent year across the globe, Scania’s net sales decreased by 18 per cent in 2020, and operating income decreased by 49 per cent.

By the fourth quarter, net sales had decreased by 6 per cent and operating income increased by 1 per cent, showing a strong bounce back.

In the fourth quarter of 2020, Scania’s order intake in Europe increased by 31 per cent compared to the fourth quarter of 2019. While in Africa and Oceania, order intake increased by a staggering 89 per cent compared to the same quarter in 2019. Though this was mainly related to South Africa and New Zealand.

Henriksson continued, “Towards the second half of 2020, demand for trucks started to rebound strongly, while it remained weak for buses and coaches. In the fourth quarter of 2020, vehicle deliveries were almost back to the previous year’s level. Cash flow in Vehicles and Services was strong thanks to Scania’s demand-driven output principle in production and efficient inventory management.

“After a tough start of last year we are now in a position of strength with a good cost structure ready to leverage the rising demand. However, the situation in the supply chain is strained in many areas, which is causing production disruptions and increased costs. The ongoing COVID-19 pandemic also adds uncertainty.”

But despite all of this, Scania maintained its commitment to fossil-free transport alternatives, launching its first fully electric truck range in September.

“We have also committed to bringing our customers at least one new electric product application in the bus and truck segment every year,” added Henriksson. “By 2025, Scania expects that electrified vehicles will account for around 10 per cent of its total vehicle sales volume in Europe and by 2030 that figure is expected to be 50 per cent.”

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