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Saab Q1 sales increased 26%, cash flow positive

Staff writer |
Saab presented the results for January-March 2016. During the first quarter, order bookings were in line with the same period last year.

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Order bookings included an order for ammunition to the weapon system Carl-Gustaf amounting to MSEK 1,433 and a large number of small orders. Order backlog at the end of the period amounted to MSEK 111,649.

Sales during the first quarter amounted to MSEK 6,790 (5,389), an increase of 26 percent.

The increase is mainly related to the Gripen programmes in business area Aeronautics, an order for GlobalEye which is attributable to business areas Surveillance (previously Electronic Defence Systems) and Support and Services, as well as the development of the submarine system A26 within the business unit Saab Kockums.

The operating income amounted to MSEK 294 (210) during the first quarter and the operating margin was 4.3 percent (3.9).

The operating income was mainly positively impacted by business area Dynamics’ increased sales and thereby completed turnaround to profitability, as well as good development in the technology consulting company Combitech within business area Industrial Products and Services.

The operating income was negatively impacted by investments in the development of a future trainer aircraft together with Boeing (T-X program), and in addition several large projects are at an early phase and thus generate lower profit.

Moreover, the business unit Saab Kockums reported a very strong first quarter 2015 due to large deliveries in projects outside Sweden.

Profitability going forward depends on execution of the large development projects in the order backlog. During 2016 Saab will continue to put attention to these proceeding according to plan.

The operational cash flow in the first quarter amounted to MSEK 3,056 (-805). The strong positive cash flow was mainly attributable to large payments received related to Gripen and GlobalEye. Net debt at the end of the period was MSEK 626, compared to MSEK 3,217 at year-end 2015. â– 


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