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Saab AB Q2 net profit $19.5 million

Staff writer |
Saab AB said said market conditions remain challenging as it reported a fall in second-quarter net profit despite increased sales. Net profit for Q2 ended June 30 was 167 million Swedish kronor ($19.5 million), down from SEK236 million in the same quarter last year, reflecting a decline in operating income.

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The company posted a negative operating income in its Dynamics business and also incurred development expenses related to the T-X program, where Saab is cooperating with Boeing to build trainer aircraft for the U.S. Air Force.

Operating income was also hurt by the delay in the contract for 36 Gripen NG from Brazil, which hasn't yet come into force, the company said.

Saab, which makes the Gripen jet fighter, submarines, radars and missile systems, said order intake during the period was SEK14.20 billion, up from SEK4.05 billion a year earlier as it received an order from the Swedish Defence Materiel Administration for the construction of two next generation submarines, and for the mid-life upgrade of two Gotland class submarines for the Swedish navy.

Sales rose to SEK5.94 billion, from SEK5.69 billion, but operating profit fell to SEK157 million from SEK373 million.

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