Saab drop in sales but increases profit – evertiq.se

Saab drop in sales but increases profit – evertiq.se

There were mixed numbers Saab unveiled its full-year report. Increased competition, combined with longer decision affected order intake for 2014.

At year-end backlog in line with 2013. Increased competition, combined with the decision-making processes in the industry tend to become longer, affected in 2014 order intake negatively, especially in the areas of Dynamics and Electronic Defence Systems. Order intake in 2014 amounted to 22’602 million (49’809). In 2013 received development orders of 29.8 billion for the Gripen E.

Sales revenue in 2014 amounted to 23’527 million (23’750) with an organic sales decline of -3 percent. A lower level of activity was noted mainly in Dynamics where market conditions have been challenging in recent years. This was offset by growth in Security and Defence Solutions, partly due to the acquisition of Saab Kockums. The reported operating profit amounted to 1’659 million (1’345) with an operating margin of 7.1 percent (5.7).

The operating cash flow in 2014 amounted to -1’197 million (- 639) due to timing differences in deliveries and milestone payments, the company writes. During the fourth quarter, the operating cash flow was SEK 753 million (548).

– 2014 brought both challenges and significant success for Saab. It was a year when the company continued to build for the future. Thanks to a long-term strategy and focus on efficiency, the company is well positioned. Defence expenditure, which in a few years declined in the US and Western Europe are expected to increase in coming years. However, expected turnaround happen slowly and not have any effect on Saab in the short term, comment CEO Håkan Buskhe