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April 24, 2012 8:45 AM, EDT

Scania’s Profit Slips as European Truck Demand Stalls

Swedish truck maker Scania AB reported a first-quarter profit but its net income slipped 29% after it cut jobs to prepare for slowing European demand and raised prices on some models, Bloomberg reported Tuesday.

Net income fell to $265 million, from $375 million a year earlier, while sales slipped 3% to $3 billion.

Soedertaelje, Sweden-based Scania, which is controlled by Volkswagen AG, reports its earnings in Swedish kronor.

First-quarter new orders fell 19% to 15,809 trucks and buses, Scania said, while deliveries fell 15% to 16,238 vehicles.

Industrywide registrations of heavy-duty trucks in the European Union fell 11% from a year earlier in February, according to the European Automobile Manufacturers Association, Bloomberg reported.