Saab's results January-June 2012

Defence and security company Saab presents the results for January-June 2012.

Results January - June 2012

• Order bookings amounted to MSEK 11,644 (10,646) and the order backlog at the end of June 2012 was MSEK 37,069 (40,657).

• Sales increased 4 per cent to MSEK 11,805 (11,313). Excluding acquisitions the development was flat. ­Exchange rates had no significant impact on sales.

• Gross income amounted to MSEK 3,566 (3,040), ­corresponding to a gross margin of 30.2 per cent (26.9).

• Operating income was MSEK 1,124 (1,065), corresponding to an operating margin of 9.5 per cent (9.4). This included a positive non-recurring item of MSEK 207 from reduction of a potential earn-out liability. 2011 included capital gains of MSEK 253.

• Net income was MSEK 803 (695), with earnings per share after dilution of SEK 7.61 (6.45).

• Operating cash flow amounted to MSEK 196 (2,334). The operating cash flow was lower mainly as a result of utilisation of and reduction in advances and milestone payments compared to the same period 2011.

• The outlook statement for 2012 has changed as a result of a positive non-recurring item during the first half-year.

Changed outlook statement 2012:

In 2012, we estimate that sales will increase slightly compared to 2011.

The operating margin in 2012, excluding material net capital gains and other non-recurring items, is expected to be in line with the operating margin in 2011, excluding material net capital gains, of 7.5 per cent.

Previous outlook statement 2012:
In 2012, we estimate that sales will increase slightly compared to 2011.
The operating margin in 2012, excluding material net capital gains, is expected to be in line with the operating margin in 2011, excluding material net capital gains, of 7.5 per cent.

Financial highlights

 MSEK  Jan-Jun 2012  Jan-Jun 2011 Change %   Apr-Jun 2012  Apr-Jun 2011  Jan-dec 2011
 Order bookings  11,644   10,646  9   7,644    5,431   18,907
  Order backlog   37,069   40,657  -9  1,412***     -300***   37,172
 Sales   11,805   11,313  4    6,232  5,861   23,498
 Gross income   3,566   3,040   17   1,992   1,613   6,707
 Gross margin, %   30.2   26.9    32.0  27.5  28.5
 Operation income (EBIT)  1,124   1,065  6   726  697  2,941
 Operating margin, %  9.5  9.4    11.6  11.9  12.5
 Net income  803   695  16  538  418  2,217
 Earnings per share before dilution,
SEK
 7.88  6.72     5.23   4.06     21.19
 Earning per share after dilution, SEK
  7.61  6.45     5.06   3.89   20.38
 Return on equity, %*
 18.4  7.9        18.1
 Operating cash flow**
  196    2,334  -92     244  1,775   2,477
Operating cash flow per share after
dilution, SEK
1.80   21.38    2.24 16.26     22.69

* The return on equity is measured over at rolling 12-month period 
** Operating cash flow includes cash flow from operating activities of MSEK 107 (2,252) and cash flow from investing activities excluding change in short -term investments and other interest -bearing financial assets of MSEK 89 (82)
 *** Refer to quarterly change

Statement by the President and CEO, Håkan Buskhe:

We secured several important large orders in the first half-year, including a significant development and support order for Gripen from the Swedish Procurement Agency, FMV.

A Declaration of Intent was signed between Sweden and Switzerland about a potential joint acquisition of Gripen as well as co-operation in other areas within security and defence. It was signed in conjunction with the Swedish Minister for Defence, Karin Enström’s, visit to Switzerland in June for a bilateral meeting with her Swiss colleague, Federal Councillor Ueli Maurer.

Currently, we see a greater interest in Gripen than perhaps ever before.

Our efforts to become more local in strategically important markets continued. At the beginning of 2012 the market areas India, South Africa and North America were established. In the second quarter, the successful creation of the market area North America was extended to include the region of South America, aligning Saab’s presence on the whole American continent.

The announcement of the intended public offer for the Dutch Traffic Management services company, HITT N.V. during the period is a step in line with our goal to strengthen our global, leading market position in the Traffic Management field. The intended acquisition will strengthen our position, especially in civilian growth markets such as China and India.

In order to develop our technology leadership and secure future offerings in current challenging market conditions, we see a continued need to invest in internally funded development.

The operating cashflow was lower as a result of utilised, and reduced, advances and milestone payments compared to the same period 2011. It remains a priority to ensure a strong operational cash-flow generation.

General market conditions remain challenging.

Press and analyst meeting

Press and financial analysts are invited to a press and analyst meeting where CEO Håkan Buskhe together with interim CFO Görgen Johansson present the results for January-June 2012.

Thursday, 19 July, 10.00 C.E.T
Grand Hotel, Blaiseholmshamnen 8, Stockholm, Sweden. Venue: Bolinderska rummet.

Live webcast
If you are unable to attend in person, please visit http://www.saabgroup.com/About-Saab/Investor-relations/ where a live webcast of the presentation 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.

R.S.V.P
E-mail: ann-sofi.jonsson@saabgroup.com 
Tel: +46 (0) 8 463 01 52

For further information, please contact:

Saab Press Centre, +46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0)734 187214
www.saabgroup.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 19 at 07.30 C.E.T.

Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.

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