Scania Annual Report 2011

76
group financial review
Group financial review
NET SALES
The net sales of the Scania Group, in the Vehicles and Services
segmen t, increased by 12 percent to SEK 87,686 m. (78,168). Currency
rate effects excluding currency hedges had a negative impact on sales
of 5 percent.
New vehicle sales revenue increased by 19 percent. Sales were
influenced by the increased number of vehicles delivered. Service
revenu e rose by 4 percent to SEK 17,048 m. (16,455). Demand was
strong in all regions. Volume increased, as regards parts as well as
workshop hours.
Interest and lease income in the Financial Services segment
increased by 4 percent, mainly due to the generally higher financing
volume and higher interest margins.
Net sales by product, SEK m. 2011 2010
Trucks 57,632 47,580
Buses 8,206 7,713
Engines 1,179 1,148
Service 17,048 16,455
Used vehicles 4,313 4,623
Miscellaneous 1 1,907 2,590
Delivery sales value 90,285 80,109
Adjustment for lease income 2 –2,599 –1,941
Total Vehicles and Services 87,686 78,168
Financial Services 4,372 4,197
Elimination 3 –1,749 –1,797
Scania Group total 90,309 80,568
1 During 2011, no future currency flows were hedged. In 2010, currency hedging income
of SEK 745 m. was included.
2 Refers to the difference between sales value based on delivery value and sales recognised
in revenue. This difference arises when a lease or delivery – combined with a residual value
guarantee or a repurchase obligation, which means that significant risks remain – is recognised
as an operating lease.
3 Elimination refers to lease income on operating leases.
NUMBER OF VEHICLES
During 2011 Scania delivered 72,120 (56,837) trucks, an increase of
27 percent. Bus chassis deliveries increased by 16 percent to 7,988
(6,875) units.
Vehicles delivered 2011 2010
Vehicles and Services
Trucks 72,120 56,837
Buses 7,988 6,875
Total new vehicles 80,108 63,712
Used vehicles 13,472 14,127
Financial Services
Number financed (new during the year)
Trucks 20,333 12,502
Buses 786 531
Total new vehicles 21,119 13,033
Used vehicles 5,534 5,573
New financing, SEK m. 25,745 17,675
Portfolio, SEK m. 42,235 36,137
EARNINGS
Scania’s operating income amounted to SEK 12,398 m. (12,746)
during 2011. Operating margin amounted to 14.1 (16.3) percent.
Operating income in Vehicles and Services totalled
SEK 11,881 m. (12,575) during 2011. Higher vehicle deliveries and
servic e volume were offset by a significantly stronger Swedish krona
and a higher cost level. A less favourable market mix and increased
raw material costs had an adverse impact on margins while higher
prices had some positive effect.
Scania’s research and development expenditures amounted
to SEK 4,658 m. (3,688). After adjusting for SEK 387 m. (351) in
capitalised expenditures and SEK 169 m. (168) in depreciation of
previously capitalised expenditures, recognised expenses increased
to SEK 4,440 m. (3,505).
Compared to 2010, currency spot rate effects amounte d to
SEK –2,190 m. During 2010, currency hedgin g income was SEK 745 m.
The overall currency rate effect was thus SEK –2,935 m. compared to
2010. During 2011, no future currency flows were hedged.
Operating income in Financial Services amounted to SEK 517 m.
(171). This was equivalent to 1.32 (0.45) percent of the average portfolio
during the year. Bad debt expenses decreased during the period.
financial reports Scania 2011