Results January - June 2010:

• Order bookings amounted to MSEK 10,516 (8,096) and the order backlog at the end of the period amounted to SEK 38.9 billion (42.4 billion).
• Sales decreased by 3% to MSEK 11,377 (11,695), also adjusted for exchange rate effects.
• Gross income amounted to MSEK 2,712 (3,037), corresponding to a gross margin of 23.8 percent (26.0). Adjusted for non-recurring items, the gross margin was 24.4% (25.3).
• Operating income was MSEK 402 (622), corresponding to an operating margin of 3.5% (5.3). Adjusted for non-recurring items, the operating margin was 4.5% (4.9). Recurring figures included charges of MSEK 290, mainly related to a terminated contract in Security and Defence Solutions.
• Net income was MSEK 246 (265), with earnings per share after dilution of SEK 2.25 (2.46).
• Operating cash flow amounted to MSEK 2,233 (-243) The outlook for 2010 has changed.

Changed Outlook for 2010:

The company remains cautious regarding order intake and foresee sales and profitability at about the same level as 2009. Long-term financial targets remain.

Previous outlook: The company remains cautious regarding order intake and foresee sales on the same level as 2009. Due to the effect of continued business improvement activities the company expects profitability to increase. Long-term financial targets remain.

Statement by the President and CEO:

"Order bookings increased for several of our business areas during the first half-year, even though we still see some delays in customer decision making processes. Sales were at the expected level and the operating cash flow was strong as a result of our business activities being delivered according to plan.

"Profitability was negatively impacted by a terminated contract in our civil security business and lower capacity utilization pending larger orders. As a consequence, we change our outlook for 2010. Previously we estimated profitability to increase compared to 2009, whereas now the profitability is expected to remain at about the same level as in 2009.

"Our strategy, focusing on value creation by delivering on our strategic priorities to increase our market focus, create a more focused portfolio and more efficient operations, remain firm," says President and CEO, Åke Svensson.

About Saab

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.

Editor's Note: For more military/aerospace news, visit our dedicated site here.