Swedish defence group Saab's profit beats forecast as sales soar

Saab's Profits Beat Expectations with Soaring Sales and Record Orders in Q3

Saab's Q3 Financial Performance and Market Outlook

By Johan Ahlander

Q3 Profit Surpasses Analyst Expectations

STOCKHOLM, Oct 23 (Reuters) - Swedish defence and aerospace group Saab reported on Friday a bigger-than-expected rise in third-quarter profit on the back of soaring sales as it continued to ride a wave of global rearmament.

Operating Profit Details

Operating profit at the maker of the Gripen fighter jet rose to 1.95 billion crowns ($197 million) from 1.37 billion a year earlier, against a 1.91 billion mean forecast in an LSEG poll of analysts.

CEO's Statement and Strategic Positioning

Market Outlook and Company Strategy

"The long-term market outlook remains favourable," CEO Micael Johansson said in a statement. "With a strong portfolio, a record high order backlog, expanding production capacity and continued investment in future capabilities, we are well positioned to achieve our financial targets," he said.

Sales Growth and Major Orders

Product Range and Sales Increase

Saab, which also makes military equipment ranging from missiles and advanced electronics to submarines, said in a statement that like-for-like sales rose 30.6% year-on-year.

Impact of Global Rearmament

Already riding consecutive years of surging demand driven by rapid rearmament across much of Europe due to Russia's war in Ukraine, the pace has picked up further for Saab this year with a string of huge orders.

Order Bookings and Key Contracts

 Saab, which competes with giants such as US-based Lockheed Martin, France's Dassault Aviation and Britain's BAE Systems, said order bookings soared 216% year-on-year in the quarter, including a 24.6 billion crown Gripen order from Ukraine.

(Reporting by Johan Ahlander, editing by Anna Ringstrom and Stephen Coates)