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 job cuts amid poor results

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.


Former Swedish Saab bosses appear in court

Swedish car maker Saab's former CEO Jan Åke Jonsson and the firm's former head lawyer Kristina Geers have appeared in court in Vänersborg in west Sweden, accused of falsifying financial documents shortly before the company went bankrupt in 2011.

Former Swedish Saab bosses appear in court
Saab's former CEO Jan Åke Jonsson. Photo: Karin Olander/TT
The pair are accused of falsifying the paperwork at the height of the Swedish company's financial difficulties at the start of the decade.
A third person – who has not been named in the Swedish media – is accused of assisting them by issuing false invoices adding up to a total of 30 million kronor ($3.55m).
According to court documents, the charges relate to the firm's business in Ukraine and the paperwork in question was signed just before former CEO Jan Åke Jonsson resigned.
Both Jonsson and Saab's former head lawyer Kristina Geers have admitted signing the papers but denied knowledge of the Ukranian firm implicated in the case.
All three suspects deny all the charges against them.

Saab's former head lawyer Kristina Geers. Photo:  Björn Larsson Rosvall/TT
Saab filed for bankruptcy at the end of 2011, after teetering on the edge of collapse for nearly two years.
Chief prosecutor Olof Sahlgren told the court in Vänersborg on Wednesday that the alleged crimes took place in March 2011, when Saab was briefly owned by the Dutch company Spyker Cars.
It was eventually bought by National Electric Vehicle Sweden (Nevs), a Chinese-owned company after hundreds of staff lost their jobs.
The car maker, which is based in west Sweden, has struggled to resolve serious financial difficulties by attracting new investors since the takeover.
In October 2014 it announced it had axed 155 workers, close to a third of its workforce.
Since 2000, Saab automobile has had no connection with the defence and aeronautics firm with the same name. It only produces one model today, the electric 9-3 Aero Sedan, mainly targeting the Chinese market.