Saab's results for January-June 2011
Defence and security company Saab presents the results for January-June
2011.
Results January-June 2011
• Order bookings amounted to MSEK 10,646 (10,516) and the order backlog
at the end of the period amounted to MSEK 40,657 (38,859)
• Sales amounted to MSEK 11,313 (11,377), a flat development adjusted
for exchange rates effects
• Gross income amounted to MSEK 3,040 (2,712), corresponding to a gross
margin of 26.9 per cent (23.8)
• Operating income was MSEK 1,065 (402), corresponding to an operating
margin of 9.4 per cent (3.5). 2011 included capital gains of MSEK 253,
whereas the Group in 2010 had structural costs and negative results from
divestments of MSEK 110 and costs related to a terminated contract of
MSEK 310.
• Net income was MSEK 695 (246), with earnings per share after dilution
of SEK 6.45 (2.25)
• Operating cash flow amounted to MSEK 2,334 (2,233)
Outlook 2011 remains unchanged
In 2011, we estimate that sales will decline slightly compared to 2010.
The operating margin, excluding material net capital gains, is expected
to increase slightly in 2011 compared to the adjusted operating margin
2010 of 6.5 per cent.
Financial highlights
MSEK
Jan-June 2011 Jan-June 2010 Change, % Apr-June 2011 Apr-June 2010
Jan-Dec 2010
Order bookings
10,646 10,516 1 5,431 5,038
26,278
Order backlog
40,657 38,859 5 -300** -695**
41,459
Sales
11,313 11,377 -1 5,861 5,993
24,434
Gross income
3,040 2,712 12 1,613 1,441
5,591
Gross margin, %
26.9 23.8 27.5 24.0
22.9
Operating income (EBIT)
1,065 402 165 697 276
975
Operating margin, % 9.4
3.5 11.9 4.6 4.0
Net income 695
246 183 418 174 454
Earnings per share before dilution, SEK
6.72 2.33 4.06 1.68
4.12
Earning per share after dilution, SEK
6.45 2.25 3.89 1.62
3.97
Return on equity, %* 7.9
6.5 - - 4.1
Operating cash flow
2,334 2,233 5 1,775 2,306
4,349
Operating cash flow per share after dilution, SEK
21.38 20.46 16.26 21.13
39.84
* The return on equity is measured over at rolling 12-month period
** Refer to quarterly change
Statement by the President and CEO, Håkan Buskhe:
"In the first six months well-executed projects led to an improved
performance and, together with divestment of non-core assets, this
resulted in a significantly increased net cash position.
Market conditions remained challenging, which is reflected in a
book-to-bill ratio below one and a flat sales development.
Our strategic priorities are to create profitable growth, to increase
performance and to continuously adapt our portfolio. Our employees
provide a solid foundation needed to achieve these ambitions.
In order to create profitable growth, we are gradually increasing our
global presence. This year we have received important orders, such as
orders from the Royal Thai Navy. We have established a strong presence
in key markets such as in India, Brazil and the UK. In India, a
strategic agreement was entered into with Mahindra Satyam to establish a
Saab India Technology Centre. We opened a research and development
centre in Brazil with a focus on energy and the environment within
transport and logistics, defence and security, and urban development. In
the UK we announced the opening of a new UK office in London and a new
Saab Design Centre in which we will leverage on British engineering
expertise.
We also announced that we intend to acquire Sensis Corporation in the
U.S., creating a stronger foundation for growth in the North American
market. Sensis has a strong local presence in the U.S. within radar and
sensors and a world-leading position in the Air Traffic Management
market. Their offering is an excellent complement to the existing Saab
offering. Within Radar and Sensors our combined product portfolios will
create growth opportunities, especially in the U.S. Within Air Traffic
Management, with Sensis world-leading market position and our combined
product portfolios, we will address a larger share of a growing global
market. Due to good market potential in the relevant segments and the
identified significant medium- to long-term operational synergies, we
believe the integration of Sensis into the Saab Group will be value
creative.
The work to adapt our portfolio is continuing. After closing of the
first six months, on 14 July, we announced our largest divestment this
year, i.e. the divestment of our 57.8 per cent share in C3 Technologies,
with an approximate cash consideration of MSEK 1,009 and capital gain of
around MSEK 906, which will be booked in the third quarter. Including
this transaction, year to date, we have divested assets, generating
about SEK 1.2 billion in capital gains.
The drive and commitment of our employees make our improvements
possible. We founded a training and competence development Academy
during the spring to ensure we leverage from the knowledge of our
employees in the best way. This is a step to ensure we have the correct
skills to achieve our set goals," says Saab's President and CEO Håkan
Buskhe.
Press and analyst meeting
Press and financial analysts are invited to a press and analyst meeting
where CEO Håkan Buskhe together with CFO Lars Granlöf present the
results for January-June 2011.
Tuesday, 19 July, 10.00 am C.E.T
World Trade Center, Conference Center, conference room Manhattan
Entrance: Kungsbron 1
Live webcast
If you are unable to attend in person, please visit
http://www.saabgroup.com/About-Saab/Investor-relations/ (http://www.saab
group.com/About-Saab/Investor-relations/) 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: karin.frisk@saabgroup.com (karin.frisk@saabgroup.com)
Tel: +46 (0) 8 463 02 30
For further information, please contact:
Saab Press Centre, +46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0)734 187214
www.saabgroup.com (http://www.saabgroup.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 July 19 at 07.30.
Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has
operations and employees on all continents and constantly develops,
adopts and improves new technology to meet customers' changing needs.
Saab's results for January-June 2011
| Quelle: SAAB AB
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