Defence and security company Saab releases the interim report for January-June 2010.
Results January – June 2010:
• Order bookings amounted to MSEK 10,516 (8,096) and the order backlog at the end of the period amounted to SEK 38.9 billion (42.4 billion)
• Sales decreased by 3 percent to MSEK 11,377 (11,695), also adjusted for exchange rate effects
• Gross income amounted to MSEK 2,712 (3,037), corresponding to a gross margin of 23.8 percent (26.0). Adjusted for non-recurring items, the gross margin was 24.4 percent (25.3)
• Operating income was MSEK 402 (622), corresponding to an operating margin of 3.5 percent (5.3). Adjusted for non-recurring items, the operating margin was 4.5 percent (4.9). Recurring figures included charges of MSEK 290, mainly related to a terminated contract in Security and Defence Solutions
• Net income was MSEK 246 (265), with earnings per share after dilution of SEK 2.25 (2.46)
• Operating cash flow amounted to MSEK 2,233 (-243)
• The outlook for 2010 has changed
Changed outlook for 2010:
We remain cautious regarding order intake and foresee sales and profitability at about the same level as 2009.
Our long-term financial targets remain.
Previous outlook: 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.
MSEK Jan-Jun 2010 Jan-Jun 2009 Change, % Apr-Jun 2010 Apr-Jun 2009 Jan-Dec 2009
Order bookings 10,516 8,096 30 5,038 3,995 18,428
Order backlog 38,859 42,414 -8 -695** -1,744** 39,389
Sales 11,377 11,695 -3 5,993 6,283 24,647
Operating income (EBIT) 402 622 -35 276 472 1,374
Operating margin, % 3.5 5.3 4.6 7.5 5.6
Adjusted operating margin, * % 4.5 4.9 5.7 6.7 5.4
Net income 246 265 -7 174 292 699
Earnings per share before dilution, SEK 2.33 2.51 1.68 2.75 6.45
Earnings per share after dilution, SEK 2.25 2.46 1.62 2.69 6.28
Return on equity,*** % 6.5 -5.3 7.0
Operating cash flow 2,233 -243 - 2,306 213 1,447
Operating cash flow per share after dilution, SEK 20.46 -2.23 21.13 1.95 13.26
* Adjusted for non-recurring items impacting operating income, for more information see page 4 -110 50 -68 50 50
** Refers to quarterly change
*** The return on equity is measured over a rolling 12-month period
Statement by the president and CEO:
“Order bookings increased for several of our business areas during the first half-year, even though we still see some delays in customer decision making processes. Sales were at the expected level and the operating cash flow was strong as a result of our business activities being delivered according to plan.
Profitability was negatively impacted by a terminated contract in our civil security business and lower capacity utilization pending larger orders. As a consequence, we change our outlook for 2010. Previously we estimated profitability to increase compared to 2009, whereas now the profitability is expected to remain at about the same level as in 2009.
Our strategy, focusing on value creation by delivering on our strategic priorities to increase our market focus, create a more focused portfolio and more efficient operations, remain firm,” says President and CEO Åke Svensson.
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 World Trade Center conference center, 4th floor, entrance from Klarabergsviadukten 70 or Kungsbron 1, friday, 23 July, 10.00 am C.E.T
If you are unable to attend in person, please visit http://www.saabgroup.com/en/InvestorRelations (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 (http://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 (email@example.com).
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 July 23 at 07.30.