From Investing.com: 2024-04-26 02:55:43

Swedish defense equipment maker Saab reported a 28% increase in first-quarter operating profit, reaching 1.19 billion crowns ($109 million) due to strong demand amid Sweden’s NATO accession. Saab raised its organic sales growth forecast for 2024 to 15-20% and saw order bookings rise to 18.5 billion crowns, with an increased order backlog of 158 billion crowns. The company is ramping up production to meet demand, recruiting 2,500 employees in 2023 and adding 725 more in the first quarter of this year.

Saab CEO Micael Johansson noted the company’s success in the market, attributing it to a strong order intake and increasing medium and small orders. He highlighted the impact of Sweden’s NATO membership on Saab’s ability to participate in alliance tender processes, leading to several orders for support weapons and Robot-70s, such as man-portable anti-tank weapons and an air defense system.

Competing with giants like Lockheed Martin, Dassault, and BAE Systems, Saab’s performance has been bolstered by rising global demand for defense products amid geopolitical turmoil. The company’s strong financial results reflect this trend, with operating profit increasing from 928 million to 1.19 billion crowns year-over-year. Saab’s expansion is evident in its increased capital expenditure by over 50% in 2023, as well as its recruitment of nearly 2,500 employees to address the growing demand.



Read more at Investing.com: Defence firm Saab raises sales outlook after Q1 profit jump By Reuters