Bluezoo
07-12-2005, 12:44 PM
Saab’s Net Profit Plunges 25 Pct in First Half of 2005
Swedish aviation and defense group Saab on June 12 reported a 25 percent drop in net profit in the first half of 2005, due in part to project delays and declining orders, and confirmed that further job cuts will be needed.
Net profit for the first six months of this year fell to 386 millions Swedish crowns (40.7 million euros) compared with 519 million SEK during the same period of 2004, the company said in a statement.
Orders fell to 6.96 billion SEK, about 20 percent less than orders in the first six months of last year.
Revenue for the period showed a slight increase to 8.43 billion SEK versus 8.37 billion SEK in 2004.
”The first half of the year did not unfold as we had expected, except for the necessary provision for one of our projects in development,” said the group’s chief executive Aake Svensson.
He was referring to the delay in the delivery of command and control systems for 18 helicopters produced by the European consortium NH Industries, which Saab had previously announced.
Saab also suffered from a reduction of work on the Gripen JAS 39 fighter plane, a project with British defense contractor BAE Systems in their joint enterprise Gripen International.
Saab confirmed that due to cutbacks in Swedish defense spending the group would have to lay off between 1,000 and 1,500 employees during this year and next....
For the full text, go to:
http://defensenews.com/story.php?F=968742&C=europe
Swedish aviation and defense group Saab on June 12 reported a 25 percent drop in net profit in the first half of 2005, due in part to project delays and declining orders, and confirmed that further job cuts will be needed.
Net profit for the first six months of this year fell to 386 millions Swedish crowns (40.7 million euros) compared with 519 million SEK during the same period of 2004, the company said in a statement.
Orders fell to 6.96 billion SEK, about 20 percent less than orders in the first six months of last year.
Revenue for the period showed a slight increase to 8.43 billion SEK versus 8.37 billion SEK in 2004.
”The first half of the year did not unfold as we had expected, except for the necessary provision for one of our projects in development,” said the group’s chief executive Aake Svensson.
He was referring to the delay in the delivery of command and control systems for 18 helicopters produced by the European consortium NH Industries, which Saab had previously announced.
Saab also suffered from a reduction of work on the Gripen JAS 39 fighter plane, a project with British defense contractor BAE Systems in their joint enterprise Gripen International.
Saab confirmed that due to cutbacks in Swedish defense spending the group would have to lay off between 1,000 and 1,500 employees during this year and next....
For the full text, go to:
http://defensenews.com/story.php?F=968742&C=europe