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
Fax: +46 8 463 01 52
Tel: +46 8 463 01 17
For streaming and broadcast-standard video, please visit 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.
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
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.
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