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/ 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
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
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.
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