Saab - results and summary January-December 2010
Defence and security company Saab presents the results for 2010.
Results January-December 2010
• Order bookings amounted to MSEK 26,278 (18,428) and the order backlog at year-end amounted to
MSEK 41,459 (39,389)
• Sales decreased by 1 per cent to MSEK 24,434 (24,647), also adjusted for effects of exchange rates and
termination of contracts
• Gross income amounted to MSEK 5,591 (6,137), corresponding to a gross margin of 22.9 per cent (24.9).
Adjusted for non-recurring items, the gross margin was 25.0 per cent (24.6)*
• Operating income was MSEK 975 (1,374), corresponding to an operating margin of 4.0 per cent (5.6).
Adjusted for non-recurring items, the operating margin was 6.5 per cent (5.4)*
• Net income was MSEK 454 (699), with earnings per share after dilution of SEK 3.97 (6.28)
• Operating cash flow amounted to MSEK 4,349 (1,447)
• Proposed dividend for 2010 SEK 3.50 per share (2.25)
* As of 2011 Saab will no longer report an operating income adjusted for non-recurring items.
In 2011, we estimate that sales will decline slightly compared to 2010.
The operating margin is expected to increase slightly in 2011 compared to the adjusted operating margin 2010.
|MSEK||Jan-Dec 2010||Jan-Dec 2009||Change, %||Oct-Dec 2010||Oct-Dec 2009|
|Gross margin, %||22.9||24.9||20.4||24.3|
|Adjusted gross margin *, %||25.0||24.6||25.9||24.3|
|Operating income (EBIT)||975||1,374||-29||251||503|
|Operating margin, %||4.0||5.6||3.1||6.5|
|Adjusted operating margin *, %||6.5||5.4||9.3||6.5|
|Earnings per share before dilution, SEK||4.12||6.45||0.09||2.97|
|Earnings per share after dilution, SEK||3.97||6.28||0.08||2.87|
|Return on equity ***, %||4.1||7.0||-||-|
|Operating cash flow||4,349||1,447||201||2,200||1,270|
|Operating cash flow per share after dilution, SEK||39.84||13,26||20.16||11.64|
|* Adjusted for non-recurring items, for more information see page 5||-602||50||-495||-|
|** Refers to quarterly change|
|*** The return on equity is measured over a rolling 12-month period|
Statement by the President and CEO, Håkan Buskhe
"In 2010, order bookings increased and our order backlog grew, despite a continued challenging business environment throughout 2010. Our underlying profitability improved throughout the year and we successfully finalized our efficiency improvement program - the "Billion+ program", which has reduced our cost base with about SEK 1.5 billion since the start of 2008. We also improved the working capital level and generated a strong operating cash flow. Our focus on continuous efficiency improvements is still a main priority.
We confirm our long-term ambitions to grow sales organically with an average of 5 per cent yearly and to achieve an operating margin of 10 per cent.
However, in 2011, we see that sales will decline slightly compared to 2010 following lower level of order bookings in previous years. In order to achieve our long-term growth target we will stay focused on our strong markets, such as the Nordic Region, many European countries, South Africa and Australia, but also establish a stronger local presence in selected areas, including North America, the UK, South America (Brazil) and Asia (Thailand and India). To succeed with our growth ambition we must also invest in product innovation and renewal. Investments will be prioritized in areas where we have a competitive technology and/or a competitive market position and aim at strengthening our unique system knowledge. Over the coming years, growth may be supported by acquisitions if value creating opportunities arise within our prioritized areas.
The operating margin is expected to increase slightly in 2011 compared to the adjusted operating margin in 2010. Over the coming two years our amortisation of capitalised development costs will stay at the 2010 level and thereafter decline. Together with efficiency improvements, this will provide a platform for us to reach our long-term operating margin target.
We will continue to focus on improving capital efficiency and generating a strong operating cash flow. Given the size and character of the current tender portfolio and our growth ambitions we also aim at keeping a net cash position in the near-term and continue to target an equity to asset ratio above 30 per cent.
A strong balance sheet, a very competitive product offering and high quality employees provide a strong foundation to drive our operational priorities, with the ultimate target to create sustainable long-term value creation." says President and CEO Håkan Buskhe.
Press and analyst meeting
Press and financial analysts are invited to a press and analyst meeting where CEO Håkan Buskhe together with CFO Lars Granlöf present the year-end report 2010.
Wednesday, 16 February, 10.00 am C.E.T
World Trade Center, Conference Center, conference room Manhattan
Entrance: Klarabergsviadukten 70 or Kungsbron 1
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 at Saab’s website afterwards.
Tel: +46 (0) 8 463 02 30
For further information, please contact:
Saab Press Centre, +46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, +46 (0)734 187214
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 February 16 at 07.30.
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.