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Defense firm Saab reports Q1 loss, cuts 300 jobs

Defense firm Saab reports Q1 loss, cuts 300 jobs

Swedish aerospace and defense company Saab AB Thursday reported a loss for the first quarter, due to higher research costs and a lower production rate, and said it will lay off 300 employees.
The company said net loss for the first quarter was 27 million kronor ($3.2 million), down from a profit of 231 million in the same period in 2008.
Sales rose to 5.4 billion kronor from 5.0 billion kronor, while order bookings fell to 4.1 billion kronor from 7.7 billion kronor.
The company, which makes parts for both Boeing and Airbus aircraft, said it has given layoff notices to 300 staff at its plant in Linkoping, Sweden as a result of the financial pressure in its aeronautics segment.
This is in addition to the 500 planned layoffs announced late last year, still Saab said it cannot rule out further staff cuts in the future.
The company said its investments in marketing and technology development remained high in the aeronautics segment during the quarter while changes to production plans among its commercial aircraft clients resulted in a lower production rate.
In total Saab's research and development costs rose to 407 million kronor from 245 million in the first quarter last year.
"Our activities in the commercial aircraft market are still under pressure, affecting profitability," Saab's chief executive Ake Svensson said in a statement. "We have to adjust our operations to the new situation and create a solid base for a more cost efficient and competitive organisation in the future."
Saab, which has around 13,000 employees, sold its automobile division to General Motors Corp. in 2000.
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On the Net
http://www.saabgroup.com


Updated : 2021-10-16 11:15 GMT+08:00