Saab Bofors Underwater Systems and the Brazilian Navy terminate torpedo project
27 August 2004
Saab Bofors Underwater Systems and the Brazilian Navy terminate torpedo
Following negotiations, Saab Bofors Underwater Systems and the Brazilian
Navy have reached an agreement to terminate the torpedo project started
in 1999. The decision is mainly a consequence of integration
difficulties due to third party proprietary rights.
The termination agreement is covered in its details by commercial
confidentiality but will entail termination costs for Saab Bofors
Underwater Systems. The termination costs are presently being calculated
but are expected to burden the income statement by not more than SEK 160
The Brazilian Navy and Saab Bofors Underwater Systems signed an
agreement in 1999 covering the development and delivery of a new torpedo
system for the Brazilian Navy's submarines. The contract value amounted
to approximately SEK 500 million.
Saab Bofors Underwater Systems is a subsidiary of Saab, a company listed
on the Stockholm Stock Exchange. The Saab half-year report published on
July 9, 2004, addressed the issue, which has now come to a conclusion.
With regard to the above, the full-year forecast will be updated when
published with the nine-month report due on October 22, 2004.
Saab is one of the world's leading high-technology companies, with its
main operations focusing on defence, aviation and space. The group
covers a broad spectrum of competence and capabilities in systems
For further information please contact:
Iréne Svensson, Group Senior VP, Communications, Saab,
telephone: + 46 (0)734 18 71 30.
Lars Wahlund, Group Senior VP, Financial Control, Saab,
telephone: + 46 (0)734 18 71 35.
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Last updated: 23 January 2015 • 14:44