STOCKHOLM (Reuters) - Truck maker Scania (>> Scania AB) said on Wednesday it was cutting production and jobs as a boom in European demand for older models ahead of new emission rules burned out, reflected in a deeper-than-expected fall in fourth-quarter order bookings.

Heavy-duty truck makers saw orders climb in Europe last year, spurred by a growing need to replace ageing fleets and a surge in purchases of older but cheaper models ahead of new emission rules coming into force at year-end.

Looking ahead, a hangover from the buying spree in a region that accounts for roughly half Scania's deliveries looks set to hit demand in the coming months, though the tentative upturn in the underlying economy could soften the blow.

Scania, majority owned by Germany's Volkswagen (>> Volkswagen AG), said it expected the pull-back to affect the first half of the year and that it was cutting 300 temporary staffers as it adjusted to softer demand.

"During the first quarter of 2014, production volume of vehicles will be adjusted to the lower order bookings," the company said in a statement.

While deliveries and sales, still supported by the tail-end of purchases of older Euro V trucks, remained brisk in the fourth quarter, group order intake of trucks and buses fell 20 percent compared to the 13 percent decline seen by analysts.

In Europe alone, truck orders fell 21 percent, coming on the heels of 84 percent surge in the preceding quarter.

Demand in Latin America, driven by incentives in regional heavyweight Brazil, has provided brisk business for Scania since mid-2012, but there too the outlook has become clouded with uncertainty amid a flight out of developing market assets.

Scania, which at the bidding of its German parent is slowly forging closer ties with like-wise VW-controlled MAN SE (>> Man SE), said it had stopped production one week longer than planned in the fourth quarter as demand faltered due to lack of clarity about financing subsidies for truck purchases which were extended to cover 2014 by Brazil only late in December.

Scania, majority owned by Germany's Volkswagen (>> Volkswagen AG), also said operating earnings rose to 2.52 billion Swedish crowns from 2.17 billion a year-ago to undershoot a mean forecast of 2.79 billion in a Reuters poll of analysts.

(Reporting by Niklas Pollard and Helena Soderpalm; editing by Simon Johnson)

By Niklas Pollard and Helena Soderpalm

Stocks treated in this article : Man SE, Volkswagen AG, Scania AB