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Saab Interim Report January-March 2018

Interim Report Q1 2018

CEO Comment

Continued strong order bookings

”Saab’s focus in 2018 is on strengthening its market position and delivering on the major development projects in the order backlog.”

Håkan Buskhe
President & CEO
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Continued strong order bookings

During the quarter, Saab made a successful first flight with the new generation of the GlobalEye, Airborne Early Warning & Control, aircraft. The flight marked an important milestone for the development of the system.

Adjusted for two large orders received in 2017, order bookings in the first quarter 2018 were strong and amounted to MSEK 6,135. In the first quarter of 2017, Saab received two major orders totalling SEK 5.2 billion. In the first quarter of 2018 a major order was received from the Swedish Defence Materiel Administration, FMV, to provide operational and development support for Gripen valued at BSEK 1.35. Bookings of medium-sized orders were strong in the quarter, Finland for example selected Saab as one of the major suppliers for the Finnish Navy’s Squadron 2000 Mid-Life Upgrade programme. As part of the same programme, Saab received a contract for production and delivery of Saab’s New Lightweight Torpedo. This is the first order for this system from a customer outside Sweden.

The interest in Saab’s products is great, and Gripen has a strong market position. Due to the strong interest in Gripen E/F, Saab has now accelerated the pace of investment to develop the system for future exports.

Sales and operating income

Sales amounted to MSEK 7,766 with organic growth of 2 per cent. The business areas Aeronautics and Surveillance saw strong growth driven by increased activity in the Gripen business as well as in Airborne Early Warning & Control systems.

Operating income amounted to MSEK 447 (539) and the operating margin was 5.8 per cent (7.1) in the period. The operating margin was lower than in 2017 due to fewer deliveries during the period, a change in the project mix and a change of the project margin in a few smaller projects.

Operational cash flow amounted to MSEK -2,211 (986), which was according to plan. The main reason for the negative cash flow was the high level of capital employed in major projects and utilisation of advances and milestone payments.

Focus 2018

Saab’s focus in 2018 is on strengthening its market position and delivering on the major development projects in the order backlog.

Key Figures

Our growth journey continues

Why invest in Saab?

On the ground close to customers

Saab has expanded its marketing organisation in recent years and created a stronger local presence and relationships with customers in selected markets. The ability to build long-term industrial partnerships provides us with greater insight into what is in demand and helps us to further develop technologies and end products in order to provide customers with the new technology and sustainable solutions they want.

Cost efficient

Saab is working constantly to shorten lead times and increase efficiency in  its production. This has resulted in lower costs for Saab and for customers. Cost efficiency is always integrated as a parameter back when products and solutions are designed, and Saab is continuously making processes more efficient through automation and digitisation.

Highly innovative

Technological development is accelerating and competition intensifying. Staying on the forefront of technology, combined with cost efficiency, is in Saab’s DNA. Cutting-edge expertise, talented employees and business strategy drive Saab and its customers to stay a step ahead and meet future challenges.

Order
backlog

% outside of Sweden
63

Earnings per share after dilution

SEK
2.25

Operating
margin

Per cent
5.8

Order bookings
and sales

MSEK

Operating income
and operating margin

MSEK

Interim Report
January-March 2018

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A step ahead

Saab’s strategy is based on three priority areas

Market

Through a strong local presence partnerships and collaborations, focus is on areas where we have a strong market position and on strengthening our position in areas with good growth opportunities.

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Performance

The focus is on continously making functional processes more efficient, implementing an even more business-oriented culture, and developing leaders and employees.

Read more

Innovation

The product portfolio is concentrated on innovations in five core areas where diversity and engaged employees drive innovation.

 

Read more

Saab Annual and Sustainability Report 2017

We create profitable growth by staying a step ahead
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