Scania profit up sharply
Shares in Swedish truck maker Scania rally in Stockholm after it posted a surprisingly sharp rise in operating income.
• Scania: 'We are much worse off than the car industry'
Swedish truck maker Scania on Tuesday posted a first-quarter operating income of 2.13 billion kronor ($296 million) compared to 506 million kronor a year ago.
Shares in the truck maker were up more than 7 percent in Stockholm afternoon trade as its profit margins were way above analysts' forecast. Also its competitor Volvo Group rose sharply on the exchange.
"This good earnings figure is explained primarily by strong demand in Brazil, where the truck market is supported both by tax breaks and interest rate subsidies", the company, led by chief executive officer Leif Östling, wrote in a comment.
Sales rose to 16.5 billion kronor from 15.86 billion kronor while operating margin swelled to 12.9 percent from 3.2 percent the year before.
The figures were released ahead of schedule and full first-quarter earnings will be posted April 28.
Last Updated (Tuesday, 13 April 2010 15:03)
