IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Wednesday, August 31, 2011

Swedish Automobile semi-annual results 2011

Swedish Automobile semi-annual results for 2011 has just been released and is available for download from Saab's media site.

Some points from the report:
  • Half year operating loss of EUR 201.5 million (comparable figure 2010: EUR 21.9 million)
  • Half year net loss of EUR 224.2 million (comparable figure 2010: EUR 55.7 million)
  • Sale of Spyker Automotive (Spyker sports car producer) has been suspended 

Here's the "high lights" copied and pasted from the report:

· H1 2011 sales of € 359.0 million, Q2 sales of € 101.9 million

· H1 EBIT of € (201.5) million, Q2 EBIT of € (122.2) million

· Cash generated from operations in H1 amounts to € (44.9) million

· Securing additional funding, restarting production and stabilizing operations top priority for management

· Longer term financing of EUR 245 million conditionally secured through agreements with Pang Da Automobile Trade

· Company Ltd (“Pang Da”) and Youngman Automotive Group Company Ltd (“Youngman”)


· Sales performance seriously affected by production stoppages and tight liquidity situation during second quarter

· 12,871 cars sold (wholesale) in H1 2011 compared to 10,240 in H1 2010, an increase of 26%

· 15,194 cars sold (retail) in H1 2011, up 44% compared to 10,535 in H1 2010

· 12,877 cars produced in H1 2011, compared to 11,851 in H1 2010, an increase of 9%

· 3,197 cars sold (wholesale) in Q2 2011 compared to 7,984 in Q2 2010, a decrease of 60%

· 5,801 cars sold (retail) in Q2 2011, up 5% compared to 5,539 in Q2 2010

· 1,989 cars produced in Q2 2011, compared to 9,497 in Q2 2010, a decrease of 79%

· Roll-out of Saab 9-4X into markets underway, first cars sold in US


Victor R. Muller, CEO of the Group and CEO and Chairman of Saab Automobile, said: “It will come as no surprise that this has been an unbelievably tough quarter for this company. Nothing is worse than having to delay salary payments to your loyal employees and they deserve nothing less than my sincere apologies. Moreover, our ever tighter financial situation resulted in sustained production stoppages, lost revenues and a significantly increased operating loss. Our business plan is under review pending completion of funding negotiations and to reflect ventures with our future partners Pang Da and Youngman.”

“There are rays of light on the horizon as well. We have booked good progress in negotiations with our suppliers on payment and delivery terms, and we continue our effort to secure additional near-term funding to enable a sustainable restart of production. Investor interest exists in Saab Automobile based on a continued belief in the long-term prospects for the brand and the company. Despite the company’s current predicament, they recognise the potential of the Saab business: several new vehicles waiting to be launched in global markets, loyal customers who continue to order cars to this very day, a strong premium brand, committed and well-funded new Chinese partners and a highly-skilled workforce responsible for many innovations in the automotive business.”

“However, we know that we can’t look too far into the future just yet. Right now, the focus of Saab management is on working as hard as possible to bring the company back into calmer waters by significantly strengthening our financial position, reaching agreement with all our suppliers on payment and delivery terms and restart production as soon as possible. We are evaluating all available options in order to secure continuity of Saab Automobile.”