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Lead times are still a problem, despite strong demand for vehicles and increasing profits at Scania. Demand for vehicles and services is rising, according to Scania, although long lead times are still an issue.However, it predicts continued strong demand for heavy trucks. The Swedish truck giant saw a 14% increase in turnover from the same period in 2006 to €4.3bn and a huge 44% growth in net profit to €433m. Scania cites the main reasons for this large move  as the 39% rise in order bookings and an 18% increase in deliveries.

A company statement says: "The demand for vehicles and services is rising in virtually all markets where Scania operates and we expect demand for heavy trucks to remain strong. "In Europe there is a shortage of transport capacity, with high demand for both new and used trucks. Demand is increasing especially rapidly in central and eastern Europe, with 80% higher order bookings during the first half of 2007."

Scania has been affected just as other truck manufacturers with high lead times due to the growth in demand. For this reason the company is investing to raise its production capacity, with the aim of reaching 100,000 vehicles by the end of 2009. The company states that the increase will be gradual and is aiming to boost its production capacity by 5% during the final months of 2007 to 84,000. Scania predicts continued strong growth with good profitability and cashflow and an annual rise in sales  of around 10% during 2007 and 2009.