Swedish high-technology group Saab has reported slightly improved profits for 2001 on the back of its defence business. The company reported falling sales compared with 2000, due to the sale of several divisions, but claimed that "organic sales growth" year-on-year had topped 5%.
The bulk of Saab's order backlog is defence orders: SKr38 billion ($3.6 billion) out of a total backlog of SKr40 billion. Around 70% of sales were also in defence, including large orders for Gripen modifications and reconnaissance pods. The Czech Republic and Hungary have chosen Gripen and the aircraft is also under consideration by the Austrian and Polish air forces.
Saab's chief executive Bengt Halse predicts better operating margins and increased income this year. Anders Fagerlund, aerospace analyst at investment bank UBS Warburg, predicts sales of SKr16.1 billion and SKr16.8 billion in 2002 and 2003, with pre-tax profit before exceptional items falling to SKr1.3 billion in 2002, then rising to SKr1.6 billion in 2003, from Skr1.6 billion announced in 2001.
Defence budgets outside the USA are expected to grow, but only moderately, while Saab may also face increased competition from cheaper Russian combat aircraft.
Meanwhile, French aerospace group Thales has reported similar revenue growth, with defence sales, responsible for over half its total revenue, rising 16.5% after several acquisitions. Total revenue was c10.3 billion ($9 billion), a net increase of 19.7% - again, mostly due to acquisitions - and ahead of its own forecasts last September.
Continuing operations saw growth of only 5.6% overall. Full results are due on 14 March, when analysts expect profits of €222 million.
Source: Flight International
