Saab's result for January-September 2010
Defence and security company Saab releases the interim report for
January-September 2010.
Results January-September 2010
· Order bookings amounted to MSEK 14,378 (11,381) and the order
backlog at the end of the period amounted to MSEK 37,451 (40,307)
· Sales decreased by 3 percent to MSEK 16,381 (16,879), also adjusted
for effects of exchange rates and termination of contracts
· Gross income amounted to MSEK 3,951 (4,252), corresponding to a
gross margin of 24.1 percent (25.2). Adjusted for non-recurring items,
the gross margin was 24.5 percent (24.7)
· Operating income was MSEK 724 (871), corresponding to an operating
margin of 4.4 percent (5.2). Adjusted for non-recurring items, the
operating margin was 5.1 percent (4.9)
· Net income was MSEK 434 (376), with earnings per share after
dilution of SEK 3.89 (3.42)
· Operating cash flow amounted to MSEK 2,149 (177)
Changed outlook for 2010:
We remain cautious regarding order intake and foresee sales at about the
same level as 2009.
Our reported operating income will be lower compared to 2009, reflecting
expected restructuring costs in the fourth quarter 2010. The adjusted
operating margin will be at about the same level as 2009.
Our long-term financial targets remain.
Previous outlook:
We remain cautious regarding order intake and foresee sales and
profitability at about the same level as 2009.
Our long-term financial targets remain.
Financial highlights
MSEK
Jan-Sept 2010 Jan-Sept 2009 Change, % Jul-Sept 2010 Jul-Sept 2009
Jan-Dec 2009
Order bookings
14,378 11,381 26 3,862 3,285
18,428
Order backlog
37,451 40,307 -7 -1,408** -2,107**
39,389
Sales
16,381 16,879 -3 5,004 5,184
24,647
Gross income
3,951 4,252 -7 1,239 1,215
6,137
Gross margin, %
24.1 25.2 24.8 23.4
24.9
Adjusted gross margin *, %
24.5 24.7 24.7 23.4
24.6
Operating income (EBIT) 724
871 -17 322 249 1,374
Operating margin, % 4.4
5.2 6.4 4.8 5.6
Adjusted operating margin *, % 5.1
4.9 6.4 4.8 5.4
Net income 434
376 15 188 111 699
Earnings per share before dilution, SEK
4.03 3.50 1.70 0.99
6.45
Earningsper share after dilution, SEK
3.89 3.42 1.64 0.96
6.28
Return on equity ***, % 7.0
-3.3 - - 7.0
Operating cash flow
2,149 177 - -84 420
1,447
Operating cash flow per share after dilution, SEK
19.69 1.62 -0.77 3.85
13.26
* Adjusted for non-recurring items, for more information see page 5
-107 50 3
50
** Refers to quarterly change
*** The return on equity is measured over a rolling 12-month period
Statement by President and CEO, Håkan Buskhe
”During my first inspiring months as President and CEO I have
experienced the amazing know-how behind our leading technology, products
and systems, as I have travelled around the world and met with our
employees, customers and other important stakeholders.
During the first nine months 2010 we secured important orders even
though we are still impacted by delayed customer decision making
processes. Due to a different project mix and a lower activity level in
some major projects sales declined, and higher costs in the first half
year had a negative impact on profitability.
Cash flow generation is strong, driven by excellent project execution,
and our balance sheet is solid, providing a strong platform for the
future.
Our strategy remains firm. We are increasing our focus on execution of
operational priorities to drive growth and leading technology
development in prioritized areas.
In order to secure future performance we are evaluating measures for
product areas where we see a low demand and will take steps to further
reduce administrative costs. Due to changes in demand we see a need to
take structural actions already in the fourth quarter 2010.
This will result in additional restructuring costs of up to MSEK 500.
Our underlying profitability for the full year 2010 will be about the
same level as 2009, whereas our reported operating income will be lower
and therefore we change our outlook for 2010,” says President and CEO
Håkan Buskhe.
Press and analysts meeting
Press and financial analysts are invited to a press and analyst meeting
where CEO Håkan Buskhe together with CFO Lars Granlöf and Cecilia Schön
Jansson, Head of Corporate Communications, will present the result for
the third quarter 2010.
Wednesday, 20 October, 10.00 am C.E.T
World Trade Center Conference Center, 4th floor
Entrance: Klarabergsviadukten 70 or Kungsbron 1
Live webcast
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 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: carin.edman@saabgroup.com (carin.edman@saabgroup.com)
Fax: +46 8 463 01 52
Tel: +46 8 463 01 17
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
journalisthelp@thenewsmarket.com (journalisthelp@thenewsmarket.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 20 October at 07.30.
For further information, please contact:
Saab Press Centre, 46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, 46 (0)734 187 214
www.saabgroup.com (http://www.saabgroup.com/)
Saab's result for January-September 2010
| Source: SAAB AB
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