Scania has reported strong earnings for its fourth quarter, with net profit up 48% to SKR2.7bn (EUR286m). Sales were up 29% to SKR24.5bn (EUR 2.6bn).

Full year net profit rose 44% to SKR8.5bn (EUR905m), while sales were up 19% to SKR84bn (EUR8.9bn).

Scania said the improved earnings were due to higher sales and higher prices. "High capacity utilisation also had a positive impact, but this was limited by increased costs related to the high activity level and higher wages," the company said in a statement.

Scania delivered 75,878 trucks in 2007, an increase of 16%. Deliveries were 22,005 in the fourth quarter.

Order intakes were 26% up for the full year but had slowed in the fourth quarter to 2%. Nevertheless, the company said that "there are currently few signs that the recent credit market turmoil has affected our customers' businesses."

Scania consequently raised its forecasts for 2008 and 2009, saying growth of over 10% is expected this year. Operating earnings forecasts remained unchanged at between 12 and 15%.