{"id":51980,"date":"2016-02-10T20:17:39","date_gmt":"2016-02-10T20:17:39","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2016\/02\/10\/saab-s-defense-contracts-international-orders-grew-2015-sales\/"},"modified":"2026-08-07T23:42:25","modified_gmt":"2026-08-07T23:42:25","slug":"saab-s-defense-contracts-international-orders-grew-2015-sales","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2016\/02\/10\/saab-s-defense-contracts-international-orders-grew-2015-sales\/","title":{"rendered":"Saab&#8217;s Defense Contracts, International Orders Grew 2015 Sales"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Originally published Feb. 10<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HELSINKI\u00a0\u2014\u00a0Saab Group&#8217;s strong growth in sales in 2015 was primarily driven by several major international orders buoyed by a steady flow of significant homegrown defense contracts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Swedish defense corporation reported sales of $3.22 billion in 2015, representing a 16 percent increase compared to 2014. The growth in organic sales rose by 11 percent in a year in which all business areas within the company posted increased orders and revenues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company&#8217;s improved operating climate saw Saab lift its income to $225.3 million in 2015, a level substantially higher than the corresponding result of $196.7 million for 2014. The company&#8217;s operating margin dipped slightly from 7.1 percent in 2014 to 7\u00a0percent in 2015.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Saab&#8217;s CEO\u00a0H\u00e5kan Buskhe\u00a0said the improved performance was helped by savings in the group&#8217;s cost base that were delivered by efficiency-led reorganization programs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;In an uncertain world, high efficiency and reduced lead times is a precondition to meet customer requirements,&#8221; Buskhe said, adding that Saab&#8217;s overall performance in 2015 was all the more notable against a backdrop of geopolitical shifts, destabilizing political events and the difficult global economic situation faced by defense sector companies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The reorganization continues within Saab. In January, the company implemented a new round of cost and production restructuring after which its business area, Security and Defense Solutions, was dissolved and its activities transferred to other business areas.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;At the same time, we continue to increase sales efforts in selected markets and to grow the volume of small- and medium-sized orders,&#8221; Buskhe said. Saab raised the volume of small- and medium-sized orders by over 30 percent in 2015.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Saab saw a surge in significant orders in 2015. At year-end, the company&#8217;s order backlog stood at $13.5 billion, a rise of almost 95 percent over the comparable figure for 2014 and equivalent to four times the Swedish defense group&#8217;s annual sales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Major orders included a $4.66 billion deal\u00a0reached with Brazil in September, under which Saab&#8217;s business area Aeronautics will produce and deliver 36 Gripen-NGs to the Brazilian Air Force from\u00a02019-2024.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Saab also secured a $1.27 billion order to deliver a Swing Role airborne surveillance system to the United Arab Emirates (UAE). On the homefront, Saab received operational capabilities-related orders connected to the Gripen-NG program that amounted to around $ 220.8 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In June 2015, Saab secured a landmark contract from FMV, Sweden&#8217;s defense material procurement agency, to design and deliver two new A26-type submarines. The order also included midlife upgrades to two of the Swedish Navy&#8217;s Gotland-class submarines.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Saab&#8217;s cash-flow position was positively affected by milestone payments related to the Gripen-NG Brazil and the A26 Swedish orders during the second half of 2015.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some 80 percent of Saab&#8217;s contract bookings comprised international orders in 2015. The corresponding figure for 2014 was 45 percent. The value of order bookings from Sweden rose by 33 percent in 2015 to\u00a0$1.94 billion. The value of orders from customers within the European Union (excluding Sweden) increased by 7 percent to $ 550 million.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The most significant growth in order bookings came from Saab&#8217;s market area &#8220;Americas.&#8221;\u00a0Bolstered by the export order to Brazil, the order value amounted to $5.21 billion. Order bookings from market area Asia also rose sharply, rising from $226 million in 2014 to $1.64 billion by year-end 2015.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Saab&#8217;s order bookings from market area Africa grew by 8 percent to $58.7 million in 2015, while the value of order bookings from Australia and the immediate region declined by 18 percent to $77.4 million for the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Around 95 percent of Saab&#8217;s order bookings in 2015 were in the defense domain.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Saab Group\u2019s strong growth in sales in 2015 was primarily driven by several major international orders buoyed by a steady flow of significant homegrown defense 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