STOCKHOLM (Reuters) -Swedish defence equipment maker Saab reported on Friday a 28% rise in operating profit for the first quarter and raised its organic sales growth outlook for the full year.
Operating profit at the maker of the Gripen fighter jet was 1.19 billion crowns ($109 million), compared with 928 million a year earlier.
Saab, which competes with U.S. defence giant Lockheed Martin, France’s Dassault and Britain’s BAE Systems, has seen strong demand for its products over the past year and has been boosted by Sweden’s accession to NATO.
“Geopolitical tensions in the world remain high and the importance of delivering systems and solutions with a shorter lead time has become even more critical,” CEO Micael Johansson said in a statement.
“Saab started 2024 by delivering increased order intake, strong sales growth and improved profitability,” he said.
Order bookings increased to 18.5 billion crowns in the quarter from 17.0 billion last year. Its order backlog increased to 158 billion crowns from 133 billion.
SAAB said it now sees organic sales growth in 2024 of 15-20%, compared to a previous outlook of 12-16%.
($1 = 10.8794 Swedish crowns)
(Reporting by Johan Ahlander, editing by Anna Ringstrom)
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