Saab's results for January-March 2011
Defence and security company Saab presents the results for January-March 2011.
Results January-March 2011
• Order bookings amounted to MSEK 5,215 (5,478) and the order backlog at the end of the period amounted to
MSEK 40,957 (39,554)
• Sales increased by 1 per cent to MSEK 5,452 (5,384), an increase of 2 per cent adjusted for effects of exchange rates
• Gross income amounted to MSEK 1,427 (1,271), corresponding to a gross margin of 26.2 per cent (23.6)
• Operating income was MSEK 368 (126), corresponding to an operating margin of 6.7 per cent (2.3)
• Net income was MSEK 277 (72), with earnings per share after dilution of SEK 2.56 (0.63)
• Operating cash flow amounted to MSEK 559 (-73)
• The outlook for 2011 has been changed due to announced capital gains
Outlook 2011:
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.
Previous outlook:
In 2011, we estimate that sales will decline slightly compared to 2010.
The operating margin is expected to increase slightly in 2011 compared to the adjusted operating margin 2010.
Financial highlights
| MSEK | Jan-Mar 2011 | Jan-Mar 2010 | Change, % | Jan-Dec 2010 |
| Order bookings | 5,215 | 5,478 | -5 | 26,278 |
| Order backlog | 40,957 | 39,554 | 4 | 41,459 |
| Sales | 5,452 | 5,384 | 1 | 24,434 |
| Gross income | 1,427 | 1,271 | 12 | 5,591 |
| Gross margin, % | 26.2 | 23.6 | 22.9 | |
| Operating income (EBIT) | 368 | 126 | 192 | 975 |
| Operating margin, % | 6.7 | 2.3 | 4.0 | |
| Net income | 277 | 72 | 285 | 454 |
| Earnings per share before dilution, SEK | 2.66 | 0.65 | 4.12 | |
| Earnings per share after dilution, SEK | 2.56 | 0.63 | 3.97 | |
| Return on equity *, % | 5.8 | 7.9 | 4.1 | |
| Operating cash flow | 559 | -73 | - | 4,349 |
| Operating cash flow per share after dilution, SEK | 5.12 | -0.67 | 39.84 | |
| * The return on equity is measured over a rolling 12-month period |
Statement by the President and CEO, Håkan Buskhe
"Priorities in defence and security budgets are continued to be debated across the globe, especially in the Western World. This creates a challenging market environment with opportunities and threats that Saab addresses on various levels in our operations.
In Sweden, we note a continued strong interest in maintaining the Gripen system as the back bone of the Swedish Air Force until at least 2040.
We continue to execute on our strategic goals to reach a stronger market presence in selected markets and in the first quarter we secured important orders both in Sweden and in other key markets such as the UK and in Asia.
Investments were further concentrated into core areas and non-core assets were divested. As a result, Saab established a research and development centre in India covering aerospace, defence and urban innovation including civil security, and strengthened its offering within virtual training and simulation through an agreed acquisition in the Czech Republic. An agreement was made to divest the shares in Grintek Ewation.
Our profitability level increased mainly due to on-going efforts to improve efficiency and cut costs throughout the organisation.
A strong operating cash flow and a strengthened balance sheet continue to support our growth ambitions.
We still have a way to go in order to reach our financial and strategic goals, but I am confident that we are on the right track to achieve these," says 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-March 2011.
Friday, 29 April, 10.00 am C.E.T
World Trade Center, Conference Center, conference room Atlanta
Entrance: Klarabergsviadukten 70 or Kungsbron 1
Live webcast
If you are unable to attend in person, please visit 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: 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 April 29 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.