Defence activity propels Saab
Saab obtained a follow-on capability order in Q3 2021 for the Swedish A26 Blekinge-class submarines. (Photo: Saab)
Nine-month financials reflect ‘high activity level in the defence business’ for Saab.
Saab posted a 29% year-on-year increase in orders for the nine months ended 30 September 2021, the Swedish defence and aerospace group announced on 22 October.
This total of SEK31.35 billion ($3.64 billion) was accompanied by an order backlog of SEK105 billion and a 19% headline increase in sales to SEK27.21 billion, which Saab stated was ‘driven by high activity level in the defence business’.
In Q3 alone, Saab won a large contract to modernise German Navy F123 frigates; a follow-on capability order for Swedish Navy A26 Blekinge-class submarines; an order from the US Army for Carl-Gustaf ammunition; and a contract to provide combat training solutions to Poland.
Operating income of SEK1.81 billion for the nine-month period exceeded the full-year 2020 total of SEK1.31 billion.
Micael Johansson, president and CEO of Saab, said that a weak civil aviation market, still affected by the impact of COVID-19, was more than offset by major defence orders in 2021 to date.
Johansson also referred to progress on the T-7A Red Hawk trainer aircraft programme in the US, where Saab is in the final stage of the Engineering, Manufacturing and Development phase.
However, he added: ‘The T-7A operations will continue to have a negative impact on earnings until we ramp up the production in West Lafayette.’
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