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.’
More from Defence Notes
-
![What will next-gen counter-UAS capabilities for the US look like?]()
What will next-gen counter-UAS capabilities for the US look like?
Future US counter-uncrewed aerial system solutions are likely to require a flexible, multi-layered approach to tackle a broad spectrum of new threats as they emerge.
-
![Elbit Systems awarded $2.3 billion contract as results soar]()
Elbit Systems awarded $2.3 billion contract as results soar
The company’s order backlog as of 30 September totalled $25.2 billion and more than a third of this is scheduled to be fulfilled before the end of 2026.
-
![US military foresees growing use of 3D printing]()
US military foresees growing use of 3D printing
Advanced manufacturing has evolved to meet military requirements and now supports multiple US critical assets, including Arleigh Burke-class destroyers, F-18, F-22, F-35, Bradley, HMMWV and Patriot.
-
![Irish Naval Service expands as the country looks to defence during EU presidency]()
Irish Naval Service expands as the country looks to defence during EU presidency
The Irish Naval Service has struggled to maintain capability, particularly in the face of lucrative private sector offers luring away personnel.
