Defence and security company Saab presents the results for January – September 2012.
Results January – September 2012
· Order bookings amounted to MSEK 15,755 (13,793) and the order backlog at the end of September 2012 was MSEK 36,331 (39,411).
· Sales increased 3 per cent to MSEK 16,704 (16,151). Excluding acquisitions sales decreased 1 per cent.Exchange rates had no significant impact on sales.
· Gross income amounted to MSEK 4,920 (4,451), corresponding to a gross margin of 29.5 per cent (27.6).
· Operating income was MSEK 1,382 (2,282), corresponding to an operating margin of 8.3 per cent (14.1). This included a non-recurring item of MSEK 207 from a reduction of a potential earn-out liability. 2011 included capital gains of MSEK 1,169. Adjusted for non-recurring items the operating margin was 7.0 per cent (6.9).
· Net income was MSEK 954 (1,798), with earnings per share after dilution of SEK 8.98 (16.60).
· Operating cash flow amounted to MSEK -660 (2,260). 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.
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.
For a list of financial highlights, please visit http://www.saabgroup.com/en/About-Saab/Newsroom/Press-releases--News/2012---10/The-Q3-Interim-Report-2012/
Statement by the President and CEO, Håkan Buskhe:
On 25 august, the Swedish Government announced it had signed a framework agreement withSwitzerlandconcerning the procurement of Gripen E, the next generation of Gripen, Saab’s multi-role fighter aircraft. The Swedish Government also, in the budget proposition to the Swedish Parliament, proposed thatSwedenacquires 40-60 Gripen E aircraft. The announcements are a strong endorsement of Gripen and its capabilities. We have presented the Swedish Government with a tender and are discussing a future order of Gripen E. At the same time, global interest in Gripen remains high.
During the first six months we secured important orders, for example an order for the support and development of Gripen C/D in Sweden. Our third quarter order bookings reached the highest level in several years. In the quarter we for example received an order for the man-portable weapon system Carl-Gustaf from the U.S. Army; the second time the U.S. Army has purchased the system.
We announced three additional market areas and a new organisational structure that, with a total of six market areas, will be operational as of 1 January 2013. This is a step to establish an even stronger international foothold.
The process of acquiring HITT N.V., a leading provider of advanced software applications in the domains of navigation, traffic and logistics support for the aviation and marine markets, proceeded. The acquisition strengthens our leading position in air and marine traffic management. In July, we also acquired a majority stake in the Norwegian consulting company, Bayes Risk Management AS, which delivers services in the field of risk analysis for the oil and gas industry as well as the financial market. The acquisition expands our technical consultancy business within Combitech.
Saab’s operating cash flow was lower as a result of utilised and reduced advances and milestone payments, compared to the same period in 2011. Working capital in our business can vary over time depending on our project mix and how customer advances and milestone payments are paid.
General market conditions are challenging and the situation will most likely continue. This is why, maybe more than ever, the Saab way, which combines quality, affordability, research and development with a global focus is our way forward.
The outlook statement for 2012 remains unchanged.
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-September 2012.
Thursday, 18 October, 10.00 C.E.T
Grand Hotel, Blaiseholmshamnen 8,Stockholm,Sweden.
Venue: Bolinderska rummet.
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.
For further information, please contact:
Investor Relations, Ann-Sofi Jönsson, +46 (0) 734 180 018, email@example.com
Saab Press Centre, +46 (0)734 180 018, 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 October 18 at 07.30 (CET).