Defence and security company Saab releases the Interim Report for January-March 2010.
Results January–March 2010:
• Order bookings increased to MSEK 5,478 (4,101) and the order backlog at the end of the period amounted to SEK 39.6 billion (44.2 billion)
• Sales amounted to MSEK 5,384 (5,412), with marginal exchange rate effects
• Gross income amounted to MSEK 1,271 (1,365), corresponding to a gross margin of 23.6 percent (25.2). Adjusted for non-recurring items, the gross margin was 24.4 percent (25.2)
• Operating income was MSEK 126 (150), corresponding to an operating margin of 2.3 percent (2.8). Adjusted for non-recurring items, the operating margin was 3.1 percent (2.8)
• A charge of MSEK 160 (including MSEK 20 write-down of capitalised development costs) was taken for projects within Security and Defence Solutions
• Net income for the period was MSEK 72 (-27), with earnings per share after dilution of SEK 0.63 (-0.24)
• Operating cash flow amounted to MSEK -73 (-456)
Outlook for 2010 remains unchanged:
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 continues to impact Saab’s markets negatively, and we still see delays in customers’ decision-making processes. During the first quarter we received significant orders from FMV* for the continued development of the Gripen system, which confirms Sweden’s long-term commitment.
Sales were on the expected level, but a provision for project overruns within Security and Defence Solutions has had a negative impact on profitability. Our outlook for the Group for 2010 remains unchanged.
Going forward, we will continue to focus efforts on strengthening our world-class technology base, winning new orders and providing value to our customers and shareholders. We will leverage on our strategic priorities to increase our market focus, create a more focused portfolio and more efficient operations. The results from our execution against these targets are visible in the organisation and we continue to follow our plans”, says President and CEO Åke Svensson.
*The Swedish Defence Materiel Administration
Press and analysts meeting
Press and analysts are invited to a presentation of the Interim Report by CEO Åke Svensson and CFO Lars Granlöf. The meeting is held in Stockholm at Nordic Sea Hotel, Vasaplan 4, conference room ”Maskinrummet”, on Wednesday April 21 at 10.00 a.m. CET.
If you are unable to attend in person, please visit http://www.saabgroup.com/en/InvestorRelations where a live webcast will be available together with the presentation material. All viewers will be able to post questions to the presenters. The webcast will also be available at Saab’s website afterwards.
For streaming and broadcast-standard video, please visit www.thenewsmarket.com/saab. If you are a first-time user, please take a moment to register. In case you have any questions, please e-mail firstname.lastname@example.org.
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 April 21 at 07.30.