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Scania sees weaker profit
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April 26, 2001: 7:25 a.m. ET
Swedish truck and bus maker posts fall in 1Q profit, plans to cut jobs
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LONDON (CNN) - Scania, the Swedish truck and bus maker, said on Thursday it expected lower earnings this year amid shrinking demand and announced job cuts.
The company said orders in the first quarter for its trucks and buses fell 12 percent while income after financial items in the first three months this year was 14 percent lower at 819 million Swedish crowns ($80 million).
"The slowdown in western European demand that I predicted earlier has intensified," said Leif Ostling, Scania chief executive.
"It was not possible to fully offset the effects of shrinking demand for heavy trucks in western Europe with volume increases in other markets, higher local-currency revenue per vehicle sold and a weaker Swedish krona," he said.
Ostling said Scania expects "lower earnings" this year, but didn't provide figures. Total sales rose 3 percent to 12.4 billion crowns.
Ostling also said the company plans to reduce its staff by 1,200 by the end of the year. Scania had just over 28,500 employees at the end of the first quarter, including some 1,480 staff gained this year through acquisitions.
Scania shares fell 1.4 percent to 215 crowns in Stockholm.
Sweden's Volvo has 30.8 percent of the voting power and 46.9 percent of Scania's share capital while Germany's Volkswagen has 34 percent of the voting power and an 18.7 percent share stake. 
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