Scania uncertain on Middle East as Arab Spring hits results
Swedish truck-maker Scania says it has seen deflated sales in the Middle East as a result of the Arab Spring. While sales fell by 3% to $268 million, its first quarter results announcement showed that profits fell by 28% compared to 2011. The company revealed that it is to cut production levels to compensate for […]
Scania described the outlook for the Middle East as uncertain.
Swedish truck-maker Scania says it has seen deflated sales in the Middle East as a result of the Arab Spring.
While sales fell by 3% to $268 million, its first quarter results announcement showed that profits fell by 28% compared to 2011. The company revealed that it is to cut production levels to compensate for weak demand in some markets.
“Lower vehicle deliveries and lower capacity utilisation pulled down earnings, as did higher costs for future-related projects,” said Scania CEO Lief Oestling. “Overall order bookings for trucks during the first quarter of 2012 were in line with the end of last year. The market in southern Europe is still at a low level.”
According to Scania, order bookings in the Middle East were still at a “low level” and the “outlook is uncertain”.
The company said that orders in the quarter were in line with the end of 2011. However it is optimistic that European demand will remain stable in 2012.
“The increase in the average age of the European truck population means that there is a growing need for replacements,” the company said.
