Nicholas Pollard
STOCKHOLM (Reuters) – Swedish protection tools maker Saab reported a barely better-than-expected rise in quarterly working revenue and maintained its forecast for hovering gross sales and income this yr as nations race to develop their army capabilities.
Saab on Friday reiterated its forecast for natural gross sales progress of 15-20% this yr and additional progress in working revenue.
The maker of protection supplies together with missiles, submarines and Gripen fighter jets stated second-quarter working revenue rose 25% to 1.33 billion kronor ($125 million), barely above analysts’ estimates of 12.9% based mostly on LSEG. billion SEK.
The corporate competes with protection majors equivalent to the US Lockheed Martin France’s Dassault Aviation (NYSE: ) and Britain’s BAE Methods (LON: ) are going through robust demand spurred by world tensions, the warfare in Ukraine and Sweden’s current entry into NATO.
Saab, which additionally sells civilian tools to clients together with Airbus and Boeing, stated orders surged 176% within the quarter, with its backlog rising to a file 182.7 billion crowns.
“This marks the second-highest order bookings quarter within the firm’s historical past,” Saab CEO Michael Johnson stated in a press release.
“The pressing want for extra assist for Ukraine and a transparent improve of European protection capabilities will stay a driver of progress for the business for a few years.”
