Saab raises sales growth target as Q4 profit rises

By Thomson Reuters Feb 9, 2024 | 12:42 AM

STOCKHOLM (Reuters) -Swedish defence equipment maker Saab raised its medium-term sales growth target on Friday as demand increases, and reported a rise in fourth-quarter operating profit.

Saab has seen a surge in orders in the last two years as many countries scramble to bolster defences amid rising global tension, sending its share price up some 250% since Russia’s full-scale invasion of Ukraine in February of 2022.

It raised its medium-term annual target for organic sales growth to around 15% from a previous goal of 10%, which it gave a year ago, for the period 2023-2027.

It also said it expected its organic sales to grow by between 12%-16% in 2024. In 2023, the organic growth was 22.6%.

Operating profit for the October to December quarter rose to 1.42 billion Swedish crowns ($135.60 million) from a year-earlier 1.31 billion.

(Reporting by Marie Mannes, editing by Terje Solsvik)