Scania’s First-Quarter Profit Drops

Swedish truck maker Scania AB reported its first-quarter profit dropped but orders jumped 31% on European fleet replacements, Bloomberg News reported.

Net income fell 22% to $1.4 billion, and sales fell 4% to $19.3 billion.

Scania, which is controlled by Volkswagen AG, reports its earnings in Swedish kronor. Scania said sales contracts rose to 20,787 trucks and buses from 15,809 a year earlier.

The company said it is promoting new models that meet tighter emissions standards to increase sales to counter an economic decline in Europe, Bloomberg reported.

Scania said in the coming years it will raise production capacity to 120,000 vehicles from the current 100,000, Bloomberg reported.