Swedish defence firm Saab reports profits fall

Swedish defence firm Saab has reported a dramatic decline in profit, posting a net profit of 11 million kronor ($1.66 million) in the second quarter, down from 732 million in the corresponding period of 2012.

Swedish defence firm Saab reports profits fall

The figures came in way below analyst expectations which had indicated an average net profit of 130 million kronor, according to a compilation of forecasts made ​​by Reuters.

Turnover fell to 5.89 billion kronor from 6.23 billion kronor, and orders more than halved to 3.17 billion kronor from 7.64 billion kronor a year earlier.

Saab’s management believes that market conditions will remain challenging for the rest of 2013.

“Due to the market, continued high investments in product development and cost efficiency measures the forecast is adjusted for the year,” said CEO Håkan Buskhe in a comment on the report.

According to the new forecast, sales revenue in 2013 is expected to be in line with 2012. Earlier forecasts from Saab had indicated that revenue would increase slightly.

The forecast for Saab’s operating margin was adjusted down to the level of the first half of 2013, instead of expectations that it would be in line with the 2012 margin of 7.7 percent.

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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.