Saab Interim Report January -- June 2003

LINKOPING, Sweden, July 9, 2003 (PRIMEZONE) -- Saab:


 - Sales SEK 8,273 m. (8,284).
 - Net income amounted to SEK 240 m. (263).
 - Earnings per share SEK 2.25 (2.47).
 - Order bookings during the first half-year were more than SEK 12
   billion, of which SEK 6 billion in the second quarter. Order
   backlog amounted thereby to a record level SEK 47 billion.
 - Operating income SEK 441 m. (474) and income after financial
   items SEK 362 m. (374).
 - Operating cash flow amounted to SEK 733 m. (373).

Statement by the CEO

"Saab continues to enjoy good order bookings, totaling more than 12 billion SEK during the first six months of this year. This means that the order backlog is now at a record level of 47 billion SEK, corresponding to almost three years invoicing. The largest single order during the second quarter came from Airbus, with whom we have now signed the final agreement for the fixed leading edge on the A380 wing. During the quarter, we have also made on schedule delivery of the first leading edge to Airbus UK, part of a project in which Saab has been engaged since the concept studies in 1997.

"Examples of other important orders during the second quarter are the Australian order for an air defense system, several British orders for laser simulators and the Swedish order for new remotely operated underwater vehicles for mine clearing and other purposes. Order bookings continue to be dominated by orders from customers outside Sweden, whose share of the order backlog increased to 62%.

"During the second quarter, Saab submitted together with Ericsson, IBM and Boeing a tender to FMV for building the future Swedish network-based defense.

"As already mentioned, the second quarter has seen further notices of personnel cutbacks within the Group. During the year, 800 persons have been given notice of redundancy as a result of weakening workload, primarily due to the few domestic development programs started in recent years. The customary variation over the year and the costs of structural measures during both the first and second quarters resulted in income during the first six months being somewhat lower than in the same period last year. However, in line with my earlier assessment, I still expect continued growth as well as improvement in operating income and operating margin for the whole year.

"On Monday 14 July, Ake Svensson will take over the helm at Saab, a duty for which he is outstandingly well suited. I view the change of captain with great confidence and wish Ake every success with an exciting, innovative and capable company."


 For further information, please contact:
 Agneta Kammeby, Manager Investor Relations       tel. +46 1318 71 25
 Irene Svensson, Senior Vice President,
 Corporate Communications                         tel. +46 8 463 01 30

 Telephone interview with CEO Bengt Halse:
 Today Wednesday July 9, approx. 13.00            tel.+46 13 1871 49
 Contact Marita Siden                             tel.+46 734 18 71 49

 International teleconference:
 Today Wednesday July 9, 13.30 (CET).             tel. +46 1318 71 49

 Marita Siden for registration and further information
 tel.+46734 18 71 49

Saab Interim Report January -- June 2003

Tags