SCANIA INTERIM REPORT– JANUARY–JUNE 2006

7/28/2006 7:06 AM EST

· Given current order books and production rates, Scania’s deliveries
will be substantially higher during 2006 than during 2005.

· Net income improved 22 percent despite a lag in production which
adversely affected second-quarter earnings by about SEK 250 m. in the
form of lower invoicing and additional production-related expenses.

· Within the next few years, the potential for cost savings in the
sales and service organisation will amount to at least SEK 500 m.
annually.

· Scania is reviewing its capital structure and will present a proposal
to the AGM 2007.


FIRST HALF
IN BRIEF First half Change in Q2
Units 2006 2005 % 2006 2005
Trucks and
bus
chassis
– Order
bookings 35,937 31,536 14 16,922 16,095
–
Deliveries 31,824 29,023 10 16,447 15,767

Revenue
and
earnings
SEK m.
(unless
otherwise
stated) EUR m. *

·
Revenue,
Scania
Group 3,819 35,224 30,434 16 17,978 16,561

Operating
income,
Vehicles
and
Service 424 3,907 3,245 20 1,907 1,692

Operating
income,
Customer
Finance 26 240 251 -4 126 125

Operating
income 450 4,147 3,496 19 2,033 1,817

Income
before
taxes 444 4,093 3,440 19 1,984 1,742

· Net
income 308 2,834 2,316 22 1,387 1,161

Operating
margin,
percent 11.8 11.5 11.3 11.0

Return on
equity,
percent ** 22.2 21.9

Return on
capital
employed,
Vehicles
and
Service,
percent 29.5 29.3
·
Earnings
per share,
SEK ** 14.17 11.58 22 6.94 5.81

Cash flow,
Vehicles
and
Service 353 3,258 941 2,068 669

Number of
employees,
30 June 31,835 30,428

Number of
shares:
200
million
***


* Translated to euros solely for the convenience of the reader at a
balance sheet date exchange rate of SEK 9.22 = EUR 1.00.
** Attributable to Scania’s shareholders.
*** After eliminating 26,296,508 shares owned by a Scania subsidiary
undergoing liquidation.
Unless otherwise stated, all comparisons in brackets refer to the same
period of last year.
This report is also available at www.scania.com