Saab's results for January-March 2012

Defence and security company Saab presents the results for January-March 2012.
Results January-March 2012

• Order bookings amounted to MSEK 4,000 (5,215)
and the order backlog at the end of March 2012 amounted to MSEK 35,657
(40,957).

• Sales increased 2 per cent to MSEK 5,573 (5,452), with a positive
impact from acquisitions of 4 per cent.

• Gross income amounted to MSEK 1,574
(1,427), ­corresponding to a gross margin of 28.2 per cent (26.2).

•
Operating income was MSEK 398 (368), corresponding to an operating margin of 7.1
per cent (6.7).

• Net income was MSEK 265 (277), with earnings per share
after dilution of SEK 2.56 (2.56).

• Operating cash flow amounted to MSEK -48
(559). The operating cash flow was negative mainly as a result of utilisation of
and reduction in advances and milestone payments compared to the same period
2011.

• The outlook for 2012 remains unchanged.

Outlook 2012:

In 2012,
we estimate that sales will increase slightly compared to 2011.

The operating
margin in 2012, excluding material net capital gains, is expected to be in line
with the operating margin in 2011, excluding material net capital gains, of 7.5
per cent.

Financial highlights

MSEK                                Jan-Mar
Jan     Change, %  Jan-Dec 2011
                                    2012
-Mar
                                             2011
Order bookings
 4,000   5,215    -23       18,907
Order backlog                        35,657
40,957  -13        37,172
Sales                                5,573   5,452
2          23,498
Gross income                         1,574   1,427   10
6,707
Gross margin, %                     28.2     26.2
28.5
Operating income (EBIT)             398      368     8
2,941
Operating margin, %                 7.1      6.7                12.5
Net
income                          265      277     -4         2,217
Earnings per
share before           2.65     2.66               21.19
dilution,
SEK
Earnings per share after dilution,  2.56     2.56
20.38
SEK
Return on equity *, %               17.4     5.8
18.1
Operating cash flow **              -48      559     -109
2,477
Operating cash flow per share       -0.44    5.12
22.69
after dilution, SEK
* The return on equity is measured
 
over a rolling 12-month period
 ** Operating cash flow includes
 
cash flow from operating
activities
of MSEK -16 (655) and cash flow
from
investing activities
excluding
change in short-term investments
and other
interest-bearing
financial
assets of MSEK -32 (-96)

Statement by the
President and CEO, Håkan Buskhe

The market situation is challenging with many
customers delaying their investment decisions due to restrained government
budgets. However, we continue to see an increased interest in our cost-efficient
high-technology products and solutions. Among European nations there is an
increasing interest in co-operation in the field of research and development and
defence material.

In Sweden, the Armed Forces presented their intention to
upgrade the fighter aircraft fleet to Gripen E/F and gave a clear commitment to
Gripen as the backbone of the Swedish Air Force. The Gripen is highly
competitive in terms of capabilities, and can be upgraded in a cost-efficient
way to meet future requirements of the Swedish Armed Forces.

The level of
small and medium sized order bookings was stable during the first quarter 2012
compared to 2011, but the lack of large orders led to a lower level of order
bookings.

One of our main priorities is to increase our local presence in
strategically important markets to drive future growth. In the period we for
instance saw a strong order increase in the U.S.

Sales increased slightly and
the operating margin improved mainly as the result of a changed product and
project mix. Based on our order backlog and current market opportunities the
outlook for 2012, with slightly increased sales and an operating margin in line
with 7.5 per cent, excluding material net capital gains, remains
firm.

Different delivery schedules impacted our operating cash flow, which
was negatively affected by the utilisation of, and reduction in, advances and
milestone payments compared to the same period 2011.

Switzerland also
reconfirmed the commitment to their 2011 down selection of Gripen for further
negotiations for a potential order.

Press and analyst meeting
Press and
financial analysts are invited to a press and analyst meeting where CEO Håkan
Buskhe together with interim CFO Görgen Johansson present the results for
January-March 2012.
Thursday, 19 April, 10.00am C.E.T
Grand Hotel, Bolinderska
Rummet, Blaiseholmshamnen 8, Stockholm, Sweden
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: ann
-sofi.jonsson@saabgroup.com
Tel: +46 (0) 734 187214
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 19 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.