Press Release: SWEDISH AUTOMOBILE N.V. including SAAB AUTOMOBILE AB REPORTS ITS SEMI-ANNUAL RESULTS 2011

Management working on different scenarios to secure funding and ensure longer term continuity of Saab and Group

Zeewolde, the Netherlands, 31 August 2011 – Swedish Automobile N.V. (Swan), a holding company that owns subsidiaries which produce and sell premium automobiles under the Saab and Spyker brands (together referred to as the “Group”), today announces its interim results for the first half year 2011 ended 30 June 2011. The Group is listed on NYSE Euronext Amsterdam (ticker symbol SWAN).

FINANCIAL DEVELOPMENTS H1 2011

  • 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”)

OPERATIONAL DEVELOPMENTS H1 2011
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.”

The half-year report and financials are available for download here (PDF)

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9 Comments

  1. We all knew this report would be ugly.  None of these figures are suprising.  What we need is for the short-term financing to come through and Saab can continue to produce and market cars.  Once production is going again, Saab will report much better numbers next quarter.

  2. Well good and bad , sales are up but production is down , seeing that the factory has been closed for various reasons it seems there is demand . The ugly could be no sales or production . A footnote for Swade thanks for your work , you keep working  and I’ll do the same , Dave  =)

  3. Despite all this they still sold more cars than last year. That’s good news! Demand is clearly there, altho perhaps a bit less than expected. When the money flows in it shouldn’t be too difficult to really get going again. According to reviews the 9-3 9-4X and 9-5 are all excellent cars so I’m optimistic 🙂

  4. I was happy to see the figure at the very beginning, but after reading the report, I found that sales didn’t increase actually:

    “2011 Net Sales are 49% higher than what was reported for 2010. This is partly driven by increased sales volume compared to last year, but is also a result of the fact that Swan’s consolidated numbers for 2010 only reflect the financial as of the effective date of acquisition, i.e. for Saab Automobile and its subsidiaries from March and for Saab Great Britain
    from June of that year.”

    That means the result of 2010 mentioned here refer to the result from Mar to Jun only, not “an apple to apple” comparison…

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