Reuters reports that heavy-duty truck maker Scania posted a gain in third-quarter pre-tax profit just below expectations on Monday but said demand in its main Western European market could improve next year.
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According to Reuters Scania posted pre-tax profit of 765 million crowns ($99.4 million), in the third quarter compared with a consensus estimate of 771 million in a Reuter’s poll of 14 analysts, and with the year-ago figure of 532 million.
“The report was about in line with expectations, except for sales which were somewhat stronger than the markets had believed,” said an analyst quoted by Reuters. “The most striking was the weak order income in Western Europe, which underlines how insecure markets there are just now.”
In the first nine months of the year Scania’s order bookings for heavy trucks in Western Europe declined by 12 percent to 19,843 units from the year-ago’s 22,619. Western Europe accounts for about two thirds of Scania’s sales.
“Economic growth in Scania’s main markets in Western Europe was weak but is expected to improve somewhat next year,” Chief Executive Leif Ostling said in a statement. “Earnings for the rest of 2003 are expected to remain at a satisfactory level.”
