Swedish truck maker Scania, which makes refuse collection vehicles as well as street sweepers, coaches and other specialist trucks, has blamed the Euro crisis and a strong Krona for a 29% drop in fourth-quarter profits to Skr2.13bn (£200m).
The company’s end of year report for 2011 reveals a 6% drop in operating income over the year on a 12% increase in sales.
Leif Östling, president and CEO said: “Scania’s earnings for the full year amounted to SEK12,398m. Higher vehicle and service volume was offset by a significantly stronger Swedish krona, a higher cost level and a changed market mix. Deliveries amounted to a record of 80,108 vehicles. Order bookings for trucks decelerated during the second half of 2011.
“Scania’s good earnings and cash flow during the past two years have strengthened the Group’s balance sheet while financing has been secured for the next several years. Scania is well-positioned following recent service and product launches.”
One analyst told Dow Jones the results were disappointing.