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Swedish Saab aerospace and defence group profits up by 70%, mainly due to restructuring costs.

Succesfuly, Saab is cutting costs to boost profitability

Aerospace and defence group Saab has announced a sharp rise in profits but warned that restructuring costs will hit income for the rest of the year.

Net profit between July and September came in at 188m Swedish kroner ($29m; £18m), up by 70% on the 111m kroner recorded a year earlier.

This was despite a fall in revenue to 5bn kroner from 5.2bn kroner.

The company also said it would incur restructuring costs of 500m kroner in the final three months of the year.

“In order to secure future performance we are evaluating measures for product areas where we see a low demand and will take steps to further reduce administrative costs,” said Hakan Buskhe, Saab’s chief executive.

“Our underlying profitability for the full year 2010 will be about the same level as 2009, whereas our reported operating income will be lower.”