STOCKHOLM (AP) -- Swedish truck maker Scania AB Wednesday said its profit increased more than six-fold in the first quarter due to higher demand and lower costs.
The company's first-quarter net profit bounced to 1.4 billion kronor ($194 million), from 179 million kronor in the same period a year ago.
Chief Executive Officer Leif Ostling said the increase was mainly due to increased capacity utilization compared with last year, when demand was low.
Revenue for the first quarter rose by 4 percent to 16.5 billion kronor ($2.3 billion) from 15.9 billion kronor, while total costs in the vehicles segment fell by 10 percent to 2.5 billion kronor ($346 million).
Shares in Scania fell by 2.5 percent to 119.2 kronor ($16.5), in line with an overall lower market in Stockholm.
Ostling said the company's has seen a strong demand for trucks in Brazil, where the market has benefited from tax breaks and interest rate subsidies.
"Demand in the European truck market improved somewhat from a very low level. There is still overcapacity among haulers, and freight prices are thus depressed," he said. "In Asia, a recovery is under way in all truck segments."
Scania said it expects demand to remain at the same level in the second quarter while capacity utilization will gradually improve.