Defence and security company Saab presents the results for January-March 2014.
Statement by the President and CEO Håkan Buskhe:
During the first quarter of 2014 the market situation remained challenging. At
the same time we see a growing interest in Saab’s offer globally and
possibilities for our high-tech and cost-effective solutions. As an example, we
have for several years grown within the naval domain and during the first
quarter the ambition to expand operations further was announced. After the end
of the first quarter, Saab entered into a non-binding Memorandum of
Understanding with ThyssenKrupp Industrial Solutions AG concerning the
acquisition of ThyssenKrupp Marine Systems AB (former Kockums). An acquisition
should meet Sweden’s need for an industrial solution concerning design,
production and maintenance of submarines and warships.
The global market’s interest in Gripen is growing. The development of the next
generation Gripen is on track and Gripen E will be delivered to Sweden starting
in 2018. Meanwhile, negotiations with Brazil regarding Gripen are progressing
and both parties’ ambition is to sign an agreement during 2014.
On May 18th, a referendum in Switzerland will be held concerning the procurement
of Gripen E. As part of our efforts to fulfil industrial cooperation commitments
in Switzerland, a Memorandum of Understanding was signed with Swiss aircraft
manufacturer Pilatus regarding the possible development of trainer aircrafts for
the Swedish Air Force.
Order bookings during the first quarter decreased compared to the same period in
2013, which can be accredited to the development orders for the Gripen E
received during the first quarter amounting to SEK 13.2 billion. The business
area Dynamics continues to show a decreasing order intake due to delays in
procurement processes. At the same time, Saab’s manportable weapon system Carl
-Gustaf was chosen to be a Program of Record within the US Army light infantry
units. This confirms Carl-Gustaf’s world-leading position.
Sales amounted to MSEK 5,280, an organic decrease of 9 per cent compared to
2013. Currency effects had a negative impact of one per cent.
The operating income amounted to MSEK 270 (396) and the operating margin was 5.1
per cent (6.8).
The business area Electronic Defence Systems showed a loss for the quarter due
to costs taken for efficiency measures and continued investments in the
development of radar and sensor technology.
Implementation of the efficiency measures initiated in 2013 progressed according
to plan. After the 2013 year-end, the number of FTE’s has decreased by
approximately 300.
The operational cash flow was negative as a result of high activity levels in
larger projects and few milestone payments during the quarter.
Earnings per share after dilution amounted to SEK 1.63 (2.46).
I note that Saab stands strong and continues to develop. The expansion within
the naval domain strengthens Saab’s position as a comprehensive supplier of
defence and security solutions in the global market.
Outlook statement 2014:
· In 2014, we estimate that sales will be in line with 2013.
· The operating margin in 2014, excluding material non-recurring items, is
expected to be somewhat higher than the operating margin in 2013, excluding
material non-recurring items.
Excluding material non-recurring items, the operating margin was 6.6 per cent in
2013.
Financial highlights
MSEK Jan Jan Change, Jan
-March -March % -Dec
2014 2013 2013
Order bookings 4,078 18,865 -78 49,809
Order backlog 58,608 47,059 25 59,870
Sales 5,280 5,862 -10 23,750
Gross income 1,361 1,612 -16 6,328
Gross margin, % 25.8 27.5 26.6
Operating income before 476 644 -26 2,367
depreciation/amortisation and write
-downs (EBITDA)
EBITDA margin, % 9.0 11.0 10.0
Operating income (EBIT) 270 396 -32 1,345
Operating margin, % 5.1 6.8 5.7
Net income 176 262 -33 742
Earnings per share before dilution, 1.64 2.54 6.98
SEK
Earnings per share after dilution, 1.63 2.46 6.79
SEK
Return on equity, %* 5.5 13.3 6.3
Free cash flow ** -316 -325 -1,460
Free cash flow per share after -2.95 -2.98 -13.38
dilution, SEK
1) The return on equity is measured
over a rolling 12-month period. 2) As
of 1 January 2014, free cash flow is
reported for the Group. It was
previously named operating cash flow.
Comparative numbers for 2013 have been
restated according to the changed
accounting principles for joint
arrangements (IFRS 11). See note 13.
Where applicable, comparative numbers
for 2013 for some business areas have
been restated following organisational
and structural changes, see note 14.
The latter has no impact on the Group
as a whole.
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 2014. Friday, April 25, 10.00 CET Grand Hotel, New York,
Blaiseholmshamnen 8, Stockholm, Sweden
R.S.V.P E-mail: karoline.sandar@saabgroup.com
Phone: +46 8 463 02 45
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 afterwards at the Saab website.
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.
For further information, please contact:
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0) 734 187 214
Saab Press Centre, +46 (0)734 180 018, presscentre@saabgroup.com
www.saabgroup.com
www.saabgroup.com/Twitter
www.saabgroup.com/YouTube
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 2014 at 07.30 CET.
Saab's results January-March 2014
| Quelle: SAAB AB
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