Saab presents the results for January-
Statement by the President and CEO
Solid performance in a time of uncertainty
COVID-19 is causing great uncertainty in a difficult time for individuals as well as the global economy. Saab has a substantial order backlog and long-term commitments. This means that the operations are stable and currently the production is continuing at a high speed, while the health of our employees are prioritized. The effect on Saab's operations has been limited so far, but the uncertainty for 2020 has increased. Our efforts to manage the challenging circumstances is proceeding in a proactive and structured way.
The focus of our work has been to ensure readiness and ability to continue delivering on our major projects. The defence business is showing a stable development, while the civil business has been affected by the sharp decline in demand related to the civil aviation industry. During the quarter, Saab took measures to mitigate future effects of COVID-19. Shorter working hours was implemented to adjust capacity within the business area IPS. In addition, Saab strengthened its financial flexibility by signing a new revolving credit facility.
Given the current disruption to the global economy, Saab cannot rule out a future impact on its business, as regards supply chains, delivery and new potential orders. Due to the uncertainty related to the scope and duration of the disruption, the previous forecast for the full-year 2020 can currently not be reconfirmed. Saab is, however, entering the second quarter with a strong order backlog, which supports a significant portion of this year's sales. Focus remains on the execution of major projects and deliveries for the year. Saab has a robust financial position in terms of capital and liquidity. For 2020, the aim remains that operational cash flow will be positive. Saab is continuing to execute on its strategic priorities and remains committed to its long-term goals of sales growth and profitability.
Orders
Order bookings in the first quarter showed an increase by 8 per cent to
Sales and operating income
Sales in the first quarter amounted to
Operating income amounted to
Operational cash flow
Operational cash flow amounted to
Outlook statement for 2020
Due to the uncertainty related to the scope and duration of the COVID-19 disruption, the previous forecast for the full-year 2020 can currently not be reconfirmed. Saab's previously delivered outlook for the full year was an organic sales growth in line with the long-term target of 5% and an improved operating margin compared to 2019.
Financial highlights
MSEK Jan-Mar Jan-Mar Change, Full Year
2020 2019 % 2019
Order bookings 4,823 4,482 8 27,216
Order backlog 90,234 97,401 -7 93,293
Sales 8,040 8,496 -5 35,433
Gross income 1,880 1,851 2 8,035
Gross margin, % 23.4 21.8 22.7
EBITDA 914 919 -1 4,305
EBITDA margin, % 11.4 10.8 12.1
Operating income (EBIT) 560 591 -5 2,937
Operating margin, % 7.0 7.0 8.3
Net income 342 397 -14 2,025
of which Parent Company's 334 398 -16 1,983
shareholders' interest
Earnings per share after 2.50 2.97 14.81
dilution, SEK ¹⁾
Return on equity, % ²⁾ 9.3 8.6 10.0
Operational cash flow -1,582 -1,923 -1,300
Free cash flow -1,700 -2,137 -2,036
Free cash flow per share after -12.71 -15.93 -15.20
dilution, SEK
¹⁾ Average number of shares 133,701,893 134,137,373 133,929,292
after dilution
²⁾ Return on equity is measured
over a rolling 12-month period.
For more information and explanations regarding the usage of these key ratios, please see http://saabgroup.com/investor-relations/financial-data/key-ratios/
Saab's Interim Report January-
Saab's CEO
Date: Friday, 24 April at 10:00 (CET).
The report is published at
You are welcome to watch the live webcast or dial in to the conference call. It is possible to post questions also over the web and conference call.
Live webcast: http://saab-interimreport.creo.se/200424
Conference call:
Please, dial in using one of the numbers below.
Sweden: +46 8 566 427 05
United Kingdom: +44 333 300 9032
United States: +1 833 526 8381
The interim report, the presentation material and the webcast will be available on http://www.saabgroup.com/investor-relations.
For further information, please contact:
+46 (0)734 182 071
merton.kaplan@saabgroup.com
Saab Press Centre,
+46 (0)734 180 018
presscentre@saabgroup.com
www.saabgroup.com
www.saabgroup.com/YouTube
Follow us on twitter: @saab (http://twitter.com/saab)
Saab serves the global market with world-leading products, services and solutions within military defence and civil security. Saab has operations and employees on all continents around the world. Through innovative, collaborative and pragmatic thinking, Saab develops, adopts and improves new technology to meet customers' changing needs.
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