Saab job cuts amid poor results

Saab job cuts amid poor results
Defence and aerospace manufacturer Saab reported disappointing third quarter results on Thursday, with pretax profits down 44 percent compared to the same period last year.

Saab’s pretax profits for the third quarter came in at 178 million kronor ($24 million), a significant decrease from last year’s 317 million kronor.

Sales also dropped 5 percent from 4.8 billion to 4.6 billion kronor.

Saab plans to launch several cost savings measures which will cut staff by 500 employees over the next two years.

Most of the job cuts will occur through natural attrition and retirements.

The forecast for 2008 as a whole continues to be “uncertain”, but Saab is sticking by sales growth projections of 3 to 4 percent and expects its operating margins remain unchanged.

Third quarter orders fell by 21 percent to 3.1 billion kronor.

So far this year, Saab’s results have dragged down by a 234 million kronor write down for losses in Saab’s civilian aircraft programme.