Saab swings back into profit
Swedish defence company Saab, maker of the Gripen fighter jet, will save an additional 650 million kronor as received orders tumbled last year.
RELATED NEWS:
• Carl Bildt talks up Swedish jet fighter in Brazil
Saab’s net profit for 2009 amounted to 699 million kronor ($97 million) compared to a loss of 242 million kronor the previous year. Sales rose by 4 percent to 24.6 billion kronor, the firm said Friday.
However, orders received during the year decreased by 30 percent.
"The global economic environment impacted Saab´s markets during 2009. Postponed customer decision-making delayed larger orders, while the stream of smaller and medium sized orders continued”, Saab’s chief executive officer Åke Svensson said.
"We remain cautious regarding order intake and foresee sales on the same level as 2009. Due to the effect of continued business improvement activities we expect profitability to increase. Our long term financial targets remain".
Saab is aiming at reducing the cost base by an additional 650 million kronor. The programme include the effects of the reduction of 500 employees in 2009 and 2010, mainly through attrition, the company said.
Fourth quarter operating profit were slightly below analysts forecast. The shares dived at the Stockholm exchange.
Last Updated (Friday, 12 February 2010 09:24)
