| Saab AB (SAAB-B.SK), Swedish defense and | | | | higher. |
| aerospace company, said last Friday that its | | | | |
| net profit rose 48% in the second quarter. | | | | Mats Liss, a Swedbank analyst said that |
| Accordingly, the increase is driven by robust | | | | although the order book was somewhat on the |
| results from its defense and security | | | | negative side, net profit and margins were |
| solutions, and systems and product divisions. | | | | good. Nevertheless, he said that the orders |
| | | | vary a lot between quarters and that the |
| Maker of the Gripen fighter jet and parts for | | | | prospect seems positive. The analyst has a |
| Boeing Co. and Airbus aircraft, the Swedish | | | | buy recommendation on the share. |
| company claimed that net profit climbed to | | | | |
| 434 million Swedish kronor or $65.37 million | | | | Since the year started, shares in Saab have |
| from SEK293 million from last year. | | | | fallen around 14 percent and it is pulled by |
| | | | the inception of an investigation in February |
| According to Market Watch, results were above | | | | by Swedish prosecutors into bribery |
| analyst expectations. Four Dow Jones analysts | | | | allegations surrounding the lease of 14 |
| had expected that net profit will jump to | | | | Gripen fighters to the Czech Republic in |
| SEK355 million. | | | | 2004. |
| | | | |
| Saab is not anymore related to Saab | | | | After allegations were uttered in a |
| automobile, which is owned by General Motors | | | | documentary on Swedish public television, the |
| Corp. But Saab automobile still manufactures | | | | prosecution was initiated. The journalists |
| Saab axle. | | | | also commented in a later program that the |
| | | | bribes had been used to help deals in Hungary |
| The company said that revenue for the second | | | | and South Africa. |
| quarter climbed from SEK5.15 billion to | | | | |
| SEK5.94 billion in the same period last year, | | | | At 0706 GMT, Saab shares were 3 percent |
| beating the SEK5.73 billion average analyst | | | | higher at SEK187, surmounting a broader |
| estimate. For the second quarter, order | | | | higher Nordic market. |
| bookings totaled SEK2.95 billion as compared | | | | |
| with SEK11.43 billion. Due to the | | | | Saab said that the sales for Defense and |
| year-earlier figures that included an order | | | | Security Solutions jumped from SEK1.93 |
| from Pakistan in the second quarter of 2006 | | | | billion to SEK2.26 billion in the second |
| for an airborne surveillance system worth | | | | quarter, and it claims it is mainly due to |
| around SEK7 billion, the decrease was | | | | the hiked scope of the new business unit Saab |
| incurred. | | | | Surveillance Systems. |
| | | | |
| At SEK630 million operating profit as | | | | Sales for Systems and Products rose from |
| compared with SEK404 million in the | | | | SEK1.88 billion to SEK2.42 billion, primarily |
| year-earlier period, analyst expectation of | | | | as a result of the buying of Saab Microwave |
| SEK528 million was exceeded. | | | | Systems on Sept. 1, 2006. |
| | | | |
| Saab repeated its forecast for the full year, | | | | Second-quarter sales for the aeronautics unit |
| claiming that it anticipates growth to be in | | | | rose from SEK1.53 billion a year earlier to |
| line with that of 2006 and the operating | | | | SEK1.62 billion. |
| margin including structural costs to be a bit | | | | |