Saab AB Q2 Profit, Orders Down, Sales Rise; FY18 View Unchanged – Quick Facts
Saab AB (SAABF.PK), a Swedish aerospace and defence company, Friday reported that second-quarter net income attributable to shareholders’ interest was 183 million Swiss kronor, down from 253 million kronor last year.
Earnings per share were 1.70 kronor, compared to 2.36 kronor a year ago.
Sales for the period grew to 7.95 billion kronor from prior year’s 7.77 billion kronor. Order bookings for the quarter plunged to 6.53 billion kronor from 10.85 billion kronor a year ago.
The first-half sales increased 2 percent to 15.7 billion kronor, and organic growth was 1 percent. The business areas Aeronautics, Surveillance and Kockums saw strong growth driven by increased activity in major projects.
First-half order bookings fell 38 percent. The company received a large order during the period for Gripen development and operational support worth 1.4 billion kronor, while last year’s large orders were 10.7 billion kronor.
The company noted that demand for high-tech defence and security solutions remained strong in the first half of 2018.
Looking ahead, Saab maintained its view that sales growth in 2018 will be in line with its long-term financial goal: annual organic sales growth of 5 percent.
The operating margin in 2018, excluding material non-recurring items, is expected to improve compared to 2017, bringing Saab a step closer to its financial goal: an operating margin of 10 percent per year over a business cycle.
by RTTNews Staff Writer
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