Defence and security company Saab presents the results for January-September
2016.
Statement by the President and CEO Håkan Buskhe:
Market development
Growing turmoil around the world continues to impact the defence market and the
civil security market. We are closely following market developments and the
global trend toward increased investment in defence and security. Demand is
clearly growing for cost-efficient systems and solutions that quickly increase
operational capabilities. At the same time, technological development continues,
with evermore digitalisation and automation within the defence industry. For
Saab, with a large part of its operations in software development, this creates
opportunities to work even more innovatively and effectively.
Order bookings and sales
Order bookings in the first nine months were in line with 2015, excluding: the
Gripen contract with Brazil, the order of type A26 submarines and a mid-life
upgrade for two Gotland-class submarines to Sweden, which were received then.
Order bookings for the third quarter were mainly driven by important small and
medium-sized deals. Two examples are the orders for the latest version of the
RBS 70 air defence system and the airport group Swedavia’s continued use of SAFE
as its command and control platform for the control centre at its Swedish
airports.
Order bookings amounted to MSEK 14,960 (62,599).
The order backlog at the end of the period amounted to MSEK 109,521 (105,486).
Sales in the first nine months increased by 15 percent (16 per cent organic
growth) to MSEK 19,615 (17,116). The increase was again mainly due to: the
Gripen programme, an order in 2015 for GlobalEye, a higher level of orders in
Dynamics and the development of the A26 submarine.
Operating income
Operating income amounted to MSEK 837 (553) and the operating margin was 4.3 per
cent (3.2). The operating margin strengthened in line with our expectations.
Operating income was again adversely affected by investments in the development
of a new jet trainer together with Boeing (T-X program), as well as by several
major projects in early stages where they normally generate lower profit.
Much of our focus is on execution of the major projects in the order backlog.
In September, Boeing and Saab revealed the first two production aircraft for the
U.S. Air Force’s T-X programme.
Operational cash flow amounted to MSEK 1,922 (-1,153). Cash flow was affected in
the third quarter by project activity related to advances and milestone
payments.
Unchanged outlook for 2016
The outlook for 2016 remains unchanged. The interest in Saab’s cost-efficient
products and solutions means increased business opportunities for Saab. At the
same time, defence procurements are preceded by processes, which are difficult
to assess, both in terms of timing and outcome.
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-Sep Jan-Sep Change, Q3 Q3 Full
2016 2015 % 2016 2015 Year
2015
Order bookings 14,960 62,599 -76 3,498 43,603 81,175
Order backlog 109,521 105,486 4 113,834
Sales 19,615 17,116 15 5,761 5,787 27,186
Gross income 4,432 3,956 12 1,352 1,282 6,486
Gross margin, % 22.6 23.1 23.5 22.2 23.9
EBITDA 1,537 1,259 22 462 429 2,859
EBITDA margin, % 7.8 7.4 8.0 7.4 10.5
Operating income 837 553 51 226 186 1,900
(EBIT)
Operating margin, % 4.3 3.2 3.9 3.2 7.0
Net income 536 293 83 122 36 1,402
Earnings per share 4.76 2.45 1.06 0.24 12.79
after dilution, SEK
Return on equity, 13.8 7.8 11.5
%*
Operational cash 1,922 -1,153 -2,271 653 -500
flow
Free cash flow 1,740 -1,595 -2,311 487 -726
Free cash flow per 16.28 -14.99 -21.59 4.57 -6.82
share after dilution,
SEK
* Return on equity
is measured over a
rolling 12- month
period.
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-September interim report 2016.
Date: Tuesday, 25 October 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/161025/
Conference call:
Please, dial in using one of the numbers below:
UK: +44 2030089801
US: +1 6465025116
Sweden: +46 8 56642666
The interim report, the presentation material and the webcast will be available
on http://saabgroup.com/investor-relations.
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 25 October 2016 at 07.30 (CET).
Saab’s Results January-September 2016
| Source: SAAB AB
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