SODERTALJE, Sweden, April 25, 2003 (PRIMEZONE) -- Scania (Other OTC:SCVAY): "In recent years we have gradually moved about a thousand skilled industrial jobs to Sweden. We believe in Sweden as a manufacturing country," said Leif Ostling, President and CEO of Scania, in his address to nearly 600 shareholders at today's Annual General Meeting, outlining Scania's operations in 2002.
Component manufacturing requires heavy investments. This is why in recent years, Scania has worked to concentrate its European production of engines, axles, gearboxes and cabs at one site per component. This production is now gathered in Sweden.
"Vehicle assembly, in which the logistics cost is high, should be located as close to the customer as possible. This is why, at the same time as we concentrated component manufacturing, the expansion of our assembly operations has occurred in Zwolle, the Netherlands and in Angers, France," Ostling explained.
He also noted that with first quarter 2003 operating income of SEK 1.3 billion and an operating margin of nearly 11 percent, Scania is maintaining its position as best in its class.
As for the market outlook during the remainder of 2003, Mr. Ostling emphasized that due to macroeconomic developments, there is a clear risk that demand for trucks and buses will be subdued.
Mr. Ostling also summarised the current situation and future prospects of Scania's entire operations, from product development and production to vehicle and service-related sales and customer finance.
He also described the core values -- putting the customer first, respect for the individual and quality in products and services, which permeate Scania's production concept.
"In the Scania Production System -- SPS -- the focus is on people, not machines or computers," he explained.
Mr. Ostling concluded his address by thanking Dr. Ferdinand Piech, who is leaving the Board of Scania at his own request, not only for his years as Chairman and a member of the Board, but also for the fine way in which he contributed to the development of the company when Volvo's plans to acquire Scania were stopped by the EU's competition authority in March 2000 and an ownership vacuum then arose.
Leif Ostling's entire speech has been posted on Scania's web site and can be reached via the following link: www.scania.com/ir/presentations
For further information, please contact: Hans-Ake Danielsson telephone number +46 8 553 856 62
Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 28,200 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 2002, turnover totalled SEK 47,000 million and income after financial items was SEK 3,700 million. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania's vehicles are sold outside Sweden. Bus manufacture takes place in Sweden, Poland, Russia, Brazil and Mexico.
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