Saab reports strong 2017 financial results.

Demand for and interest in Saab’s world-leading products and solutions are strong, the Swedish company said today, February 16, 2018. In 2017, Saab strengthened its market position, at the same time that operating efficiency was improved.

(Saab)

Several important international collaborations were established that strengthen the local position in several countries. In Poland, for example, Saab selected the Nauta Shiprepair Yard to build the special purpose Signal Intelligence vessel for the Swedish Navy. In Australia, targeted market efforts led to the announcement that Saab has been identified by the government to provide the tactical interface to the Royal Australian Navy’s fleet of nine Future Frigates.

2017 was a strong year for Saab. Major orders were received in several areas and order bookings rose by 41 per cent to SEK 30.8 billion (US$3.8Bn). Orders were received from among other areas Airborne Early Warning and Control and support and maintenance for Gripen C/D. We also received important orders for the development of next-generation products, including Sweden’s order for the development and production of the next generation of anti-ship missiles and a new signals intelligence vessel. Medium-sized orders increased as well, which is gratifying, since we have maintained a local focus for some time in our various markets to grow the base where we are active.
The order backlog amounted to SEK 106.8 billion (US$13.4Bn) at the end of the year.

All business areas saw sales growth during the year and organic sales growth was 10 per cent.

in 2017 a number of efficiency improvement projects has been implemented within the company, where we for example focus on streamlining functional processes. Mainly the business area Dynamics and operations related to Airborne Early Warning and Control systems and support operations improved profitability in 2017.

In 2018, the focus on efficiency improvements will continue. This is an important factor for Saab to reach its long-term goal of a 10 per cent operating margin.

Sales growth in 2018 is expected to be in line with Saab’s long-term goal: annual organic growth of 5 per cent.

The operating margin in 2018, excluding material non-recurring items, is expected to improve compared to 2017, bringing Saab a further step closer to its financial goal: an operating margin of 10 per cent over a business cycle.