Defence activity propels 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
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.