Scania, the Swedish heavy truck manufacturer, swung to a second quarter net loss of $19.5 million from a year earlier net profit of $395 million on plunging sales and orders.
Scania, majority-controlled by Volkswagen, managed a small operating profit of $2.24 million in the three months to June 30 compared with a $523 million profit in the same period in 2008.
Sales crashed 40 percent to $1.9 billion from $3.1 billion with the company blaming weak demand in “practically all markets” in which it operates.
Truck deliveries fell nearly 60 percent in the quarter while orders, down 55 percent year-on-year, were an improvement on the first three months of the year.
Scania, which claims a 13.6 percent European truck market share and is strong in Brazil, said it expects demand to remain low in the traditionally weak third quarter.
But the company, which competes with domestic rival Volvo, plans to boost output because of reduced inventory in its major markets and brisker second quarter orders. In the first six months of 2009 Scania’s truck deliveries fell 51 percent year-on-year to 17,618 units while orders were 65 percent lower at 11,687.
Scania introduced a four day week in June for 12,000 employees in Sweden and cut wages by ten percent. This will produce savings of nearly $40 million within six months, Scania CEO Leif Ostling said.
Earlier this week, Volvo announced a $725 million second quarter net loss compared with a year-earlier profit of $666 million.
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