Saab's results January-March 2013
Defence and security company Saab presents the results for January-March 2013.
CEO comment: Håkan Buskhe
The year started strong with an increase in order bookings in all business areas and the order backlog grew by 32 per cent. Sales amounted to MSEK 5,862 with a reported and organic growth of 5 per cent. A high activity level, especially in the business areas Aeronautics and Combitech, contributed to growth.
The operating margin was 6.8 per cent. During the quarter 6.1 per cent of sales were invested in internally funded research and development. In business area Electronic Defence Systems we invested strongly in radar and sensor technologies, which together with a different project mix compared to 2012, led to an operating loss in the business area. We will continue to invest in these areas going forward since these technologies provide the basis for several of our systems and offerings. The earnings per share after dilution amounted to SEK 2.46. The operating cash flow was negative as a result of utilisation of customer advances and a timing difference in milestone payments.
In summary, we view the reported result as a very good achievement in the current demanding market conditions.
An important milestone was reached on 15 February when we announced a key agreement with the Swedish Defence Materiel Administration, FMV, concerning the development and modification of Gripen E, the next generation of our fighter aircraft Gripen. During the first quarter we received orders for the complete development of Gripen E from Sweden totalling SEK 13.2 billion. The agreement includes potential orders concerning Gripen E to a total of SEK 47.2 billion during 2013 and 2014, including a potential order for Gripen E to Switzerland.
We also received an order for an upgrade of a mission system for the Erieye system in Brazil as well as a major support contract for an additional airborne surveillance system. Both orders are a further confirmation of our strong capability to provide advanced technology and service and support solutions.
Our market area organisation has been in place for three months. We now focus on leveraging on our existing market position and enhancing our growth possibilities. The internal work to increase efficiency continues at full speed.
Market conditions are challenging, especially in Europe and in the U.S., where sequestration is putting pressure on federal spending. We foresee the continued challenging market situation to remain throughout 2013. As security and defence companies are increasingly looking for business opportunities outside their traditional home markets, competition is fierce, especially in growth markets such as India and Asia Pacific. As one of the most cost-efficient companies in our industry, we are well-prepared and well-positioned to continue to support our customers with world-class technology.
Outlook statement 2013:
• In 2013, we estimate that sales will increase slightly compared to 2012.
• The operating margin in 2013, excluding material net capital gains and other non-recurring items, is expected to be in line with the operating margin in 2012, excluding material non-recurring items, of 7.7 per cent*.
* Restated from 7.6 per cent to 7.7 per cent due to the changed accounting principles for pensions (IAS 19).
Financial highlights
| MSEK | Jan-Mar 2013 | Jan-Mar 2012 | Change, % | Jan-Dec 2012 |
| Order bookings | 18,865 | 4,000 | 372 | 20,683 |
| Order backlog | 47,059 | 35,657 | 32 | 34,151 |
| Sales | 5,862 | 5,573 | 5 | 24,010 |
| Gross income | 1,612 | 1,579 | 2 | 7,208 |
| Gross margin, % | 27.5 | 28.3 | 30.0 | |
| Operating income before depreciation/amortisation and write-downs (EBITDA) | 644 | 684 | 3,186 | |
| EBITDA margin | 11.0 | 12.3 | 13.3 | |
| Operating income (EBIT) | 396 | 403 | -2 | 2,050 |
| Operating margin, % | 6.8 | 7.2 | 8.5 | |
| Net income | 262 | 283 | -7 | 1,560 |
| Earnings per share before dilution, SEK | 2.54 | 2.82 | 15.0 | |
| Earnings per share after dilution, SEK | 2.46 | 2.72 | 14.52 | |
| Return on equity*, % | 13.3 | 19.3 | 12.8 | |
| Operating cash flow** | -349 | -48 | -109 | -396 |
| Operating cash flow per share after dilution, SEK | -3.20 | -0.44 | -3.63 | |
| * The return on equity is measured over a rolling 12-month period | ||||
| ** Operating cash flow includes cash flow from operating activities of MSEK -234 (-16) and cash flow from investing activities excluding change in short-term investments and other interest-bearing financial assets of MSEK -115 (-32) |
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| All figures presented for 2012 are restated according to the changed accounting principles for pensions (IAS 19). Financials for 2011 and earlier periods are not restated. |
Press and analyst meeting
Press and financial analysts are invited to a press and analyst meeting where CEO Håkan Buskhe together with CFO Magnus Örnberg present the results for January-March 2013.
Thursday, 25 April, 10.00am C.E.T
Grand Hotel, New York, Blaiseholmshamnen 8, Stockholm, Sweden
R.S.V.P
E-mail: susanne.vikman@saabgroup.com
Phone: +46 8 463 00 36
Live webcast
If you are unable to attend in person, please visithttp://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.
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 April 25 at 07.30am CET.
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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