Scania’s new president and  CEO,  Christian Levin,  has revealed the Swedish commercial vehicle makers interim report for the first quarter of this year revealing strong earnings and operating margins  on the back of operating incomes that are up by 55 per cent.

“The first quarter of the year was characterised by a high level of activity both in order intake and deliveries, despite major difficulties related to pandemicrestrictions and the supply chain,”” Levin said.

“Scania managed to deliver strong earnings and an operating margin of 13 per cent and we saw that the hard work with the cost structure that was carried out lastyear is paying off,” he added.

Scania’s net sales amounted to almost $AUD 5.5 billion (SEK 36 billion) during the  first quarter of 2021, an increase of 8 per cent, while ehicle deliveries rose by 27 per cent and service revenue increased by 5 per cent  the company said.

The global shortage of semiconductors and other components is iimpacted the entire industry, and despite an imminent risk of production disruptions Scania says it is one of the few European manufacturers, which has managed to maintain a high production rate without any stoppages due to shortage of components in the first quarter.

“This is thanks to intense and successful cross-functional efforts in close collaboration with our suppliers,” Levin said.

“In the European system the daily production pace for trucks is slightly reduced during a few number of days in the second quarter, as a temporary measure to handle the shortage of semiconductors,” he added

“After last year’s uncertainty due to the pandemic, the recovery in demand has continued to be strong during this quarter.”

“Our customers’ capacity utilisation

is good and data gathered from connected Scania vehicles show a high level of transport activity, particularly in the long haulage and constructionsegments,” the Scania boss continues.

“On the bus and coach side, the low level of activity continues, particularly for coaches, while the situation for city buses is slightly better.

“The investment  need that follows the high transport activity of our truck      customers has also been seen in the order books during the quarter. Order intake for trucks is strong in essentially all markets, while it is weaker for buses and coaches,” said Levin.

“During the quarter, we started the construction of our new battery assembly plant in Södertälje. The facility which will be fully operational by 2023, clearly demonstrates our determination to take a leading role in heavy vehicle electrification,” he added.

“Operating an on-site battery assembly plant is a prerequisite for large-scale production of electric vehicles, delivering increasing volumes of electric vehicles is crucial for Scania’s commitment to fulfil our climate targets.

“As new to the CEO position – but after 25 years in the company – I am looking forward to continuing to drive the shift to sustainable transport withScania in the lead,” Levin commented.

“ The strategy remains and to be able to deliver on the strategy, we accelerate the ongoing transformation of the company,”

he concluded