Defence and security company Saab presents the results for January-June 2016.
Statement by the President and CEO Håkan Buskhe:
Market development
Growing turmoil around the world is impacting the defence market. As a
consequence of constrained budgets, Saab is seeing an increase in short-term
demand for defence capabilities with cost efficient products and solutions. This
makes our efforts with efficiency and to reduce lead times more important than
ever. Saab’s focus is partly to take advantage of market opportunities and
partly on the execution of a number of major projects.
Strong growth in order bookings
During the first half-year 2016, Saab was awarded a number of new contracts,
including for airborne surveillance, ammunition for the Carl-Gustaf weapon
system, and the development and production of the New Lightweight Torpedo system
for Sweden. Order bookings amounted to MSEK 11,462, compared to MSEK 18,996 in
the previous year. An order from the Swedish Defence Material Administration
(FMV) for Type A26 submarines was booked during the first half-year 2015, as was
the overhaul and upgrade of Gotland-class submarines, together valued at SEK 8.6
billion. The order backlog at the end of the period was MSEK 111,593.
Gripen E offers increased defence capabilities
The Gripen E was rolled out on May 18. Users of Gripen E can operate longer in
the air, improved sensors and electronic warfare will provide better
intelligence on the enemy, and it will carry more and better weapons. At the
same time, Gripen E is highly cost-efficient. Deliveries of the next-generation
Gripen to Sweden and Brazil will begin in 2019.
Sales growth
Sales amounted to MSEK 13,854 in the first half-year, an increase of 22 per
cent.
All business areas improved their sales during the period. The increase was
mainly due to the Gripen programme in the business area Aeronautics, a 2015
order for a new version of an airborne surveillance system, GlobalEye, in the
business areas Surveillance and Support and Services, and the development of the
A26 submarine in the business unit Saab Kockums.
Operating income amounted to MSEK 611 (367) in the first half-year and the
operating margin was 4.4 per cent (3.2). All business areas but Industrial
Products and Services and the business unit Saab Kockums improved their
operating margins. Business area Dynamics saw the biggest improvement in
operating income thanks to increased deliveries and a change in the product mix.
Operating income was again affected by investments in the development of a new
jet trainer together with Boeing (the T-X program), as well as by several major
projects in early stages where they normally generate lower profit.
Strong cash flow
Operational cash flow amounted to MSEK 4,193 (-1,806) in the first half-year.
Cash flow strengthened in several areas. The increase is mainly related to large
payments within the framework of orders for Gripen and an order for GlobalEye.
Net debt amounted to MSEK 405 at the end of the period, compared to MSEK 3,217
at the end of 2015.
Unchanged outlook statement 2016:
· In 2016, we estimate sales to be in line with Saab’s long-term financial
goal: annual organic sales growth of 5 per cent.
· The operating margin 2016, excluding material non-recurring items, is
expected to be in line with 2015.
Financial highlights
MSEK Jan-Jun Jan Change, Q2 Q2 Full
2016 -Jun % 2016 2015 Year
2015 2015
Order bookings 11,462 18,996 -40 6,848 14,196 81,175
Order backlog 111,593 67,853 64 113,834
Sales 13,854 11,329 22 7,064 5,940 27,186
Gross income 3,080 2,674 15 1,569 1,358 6,486
Gross margin, % 22.2 23.6 22.2 22.9 23.9
EBITDA 1,075 830 30 551 392 2,859
EBITDA margin, % 7.8 7.3 7.8 6.6 10.5
Operating income (EBIT) 611 367 66 317 157 1,900
Operating margin, % 4.4 3.2 4.5 2.6 7.0
Net income 414 257 61 191 167 1,402
Earnings per share 3.71 2.21 1.71 1.42 12.79
after dilution, SEK
Return on equity, % 13.0 8.6 11.5
Operational cash flow 4,193 -1,806 1,137 -1,001 -500
Free cash flow 4,051 -2,082 1,096 -1,141 -726
Free cash flow per 37.91 -19.57 10.25 -10.72 -6.82
share after dilution,
SEK
For more information and explanations regarding the usage of these key ratios,
please see http://saabgroup.com/investor-relations/financial-data/key-ratios/
.
Press and analyst meeting
Saab invites to a press and analyst meeting, where CEO Håkan Buskhe and CFO
Magnus Örnberg present the Saab January-June interim report 2015.
Date: Thursday, 21 July at 10:00 (CET)
Address: Grand Hôtel, Blasieholmshamnen 8, Stockholm, Sweden
Venue: New York
You are welcome to participate on site at Grand Hôtel, watch the live webcast or
dial in to the conference call. It is possible to post questions also over the
web and conference call.
Live webcast:
http://saab-interimreport.creo.se/160721
Conference call:
Please, dial in using one of the numbers below.
UK: +44 2030089813
US: +1 8557532235
SE: +46 856642700
The interim report, the presentation material and the webcast will be available
on http://www.saabgroup.com/en/InvestorRelations.
R.S.V.P
E-mail: marie.bergstrom@saabgroup.com
Tel: +46 8 463 02 45
For further information, please contact:
Saab Press Centre,
+46 (0)734 180 018,
presscentre@saabgroup.com
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0) 734 187 214
www.saabgroup.com
www.saabgroup.com/YouTube
Follow us on Twitter: @saab
Saab serves the global market with world-leading products, services and
solutions within military defence and civil security. Saab has operations and
employees on all continents around the world. Through innovative, collaborative
and pragmatic thinking, Saab develops, adopts and improves new technology to
meet customers’ changing needs.
This information is such that Saab AB is obliged to make public pursuant to the
EU Market Abuse Regulation and the Securities Markets Act. The information was
submitted for publication, through the agency of the contact person set out
above, on 17 July 2015 at 07.30 (CET).
Saab’s Results January-June 2016
| Source: SAAB AB
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