Saab – Results and summary January-December 2009

Defence and security company Saab presents the result for 2009.

Results January–December 2009:
Order bookings amounted to MSEK 18,428 (23,212) and the order backlog at year-end amounted to SEK 39.4 billion (45.3 billion)

Sales rose by 4 percent to MSEK 24,647 (23,796), also adjusted for divestments and exchange rate effects

Gross income amounted to MSEK 6,137 (4,634), corresponding to a gross margin of 24.9 percent (19.5). Adjusted for non-recurring items, the gross margin was 24.6 percent (26.5)

Operating income was MSEK 1,374 (166), corresponding to an operating margin of 5.6 percent
(0.7). Adjusted for non-recurring items, the operating margin was 5.4 percent (8.4). The operating margin was reduced by approximately 3 percentage points during 2009 due to the more conservative view on the application of accounting for development costs as of 1 January 2009

Net income for 2009 was MSEK 699 (-242), with earnings per share after dilution of SEK 6.28
(-2.31)

Operating cash flow amounted to MSEK 1,447 (659)

Proposed dividend of SEK 2.25 per share (1.75)



Results October–December 2009:
Order bookings amounted to MSEK 7,047 (7,162)

Sales declined by 5 percent to MSEK 7,768 (8,188), a decrease of 7 percent adjusted for divestments and exchange rate effects

Gross income amounted to MSEK 1,885 (644), corresponding to a gross margin of 24.3 percent (7.9). Adjusted for non-recurring items, the gross margin was 24.3 percent (27.9)

Operating income was MSEK 503 (-809), corresponding to an operating margin of 6.5 percent
(-9.9). Adjusted for non-recurring items, the operating margin was 6.5 percent (13.2). The operating margin was reduced by approximately 3 percentage points during the period due to the more conservative view on the application of accounting for development costs as of 1 January 2009

Net income for the fourth quarter was MSEK 323 (-708), with earnings per share after dilution of SEK 2.87 (-6.78)



Outlook for 2010:
We remain cautious regarding order intake and foresee sales on the same level as 2009.

Due to the effect of continued business improvement activities we expect profitability to increase.

Our long term financial targets remain.



Statement by the CEO
“The global economic environment impacted Saab’s markets during 2009. Postponed customer decision-making delayed larger orders, while the stream of smaller and medium sized orders continued.

Sales grew driven by increased project activities, but gross margin was reduced due to the business mix and some project overruns. However, the efficiency improvement initiatives delivered cost reductions according to plan.

Our strategy is to create a stronger market focus with a more streamlined business portfolio. To enable the execution of our strategy and further increase efficiency, a new organisational structure is operational as of 1 January 2010.

We remain cautious regarding order intake and foresee sales on the same level as 2009. Due to the effect of continued business improvement activities we expect profitability to increase. Our long term financial targets remain”, says CEO Åke Svensson.



Press and analysts conference
The result will be presented in a press conference by CEO Åke Svensson and CFO Lars Granlöf.

Friday February 12 at 10.00
World Trade Center, Conference center, floor 4 (Stockholm, Sweden)
Entrance via Klarabergsviadukten 70 or Kungsbron 1
Kindly respond to annika.widell@saabgroup.com, or fax +46 (0)8 463 01 52.

Live webcast
The press and analyst meeting will be webcasted live at Saab’s web site, www.saabgroup.com/en/InvestorRelations. The presentation will also be published there. All viewers will be able to post questions to the presenters.







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The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was submitted for publication on February 12 at 07.30.
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