Stockholm  - Swedish heavy-vehicle and bus maker Scania posted higher second quarter profits Friday, driven by strong demand from Russia, the members of the Commonwealth of Independent States, Latin America and Asia.

Pre-tax profit for the quarter was 4.24 billion kronor (702 million dollars), compared to 2.89 billion kronor for the corresponding business period 2007 - well above analysts forecasts.

Second-quarter sales increased from 20.9 billion kronor to 23.89 billion kronor.

"Order bookings decreased in Europe, while demand was strong in Russia and other CIS countries as well as in Latin America and Asia," Chief Executive Leif Ostling said.

In its outlook, management said it expected "earnings 2008 will be higher than 2007" but said "recent developments in various markets in Europe make it difficult to give an outlook for 2009."

Ostling said Scania was still aiming to be able to make 90,000 vehicles at the end of the year, and at the end of 2009 have capacity to make 100,000 vehicles.

During the quarter, Scania delivered 20,508 trucks and buses, a 2- per-cent increase compared to second-quarter 2007.

Scania said its estimated share of the heavy truck market in Western Europe was about 13.5 per cent during the quarter, compared to 14.3 per cent in the corresponding business period 2007.

At the end of the quarter, Scania had 35,892 employees, compared to 34,340 at the end of June 2007. (dpa)