Saab 2010 Annual Report Download - page 40

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The purpose of these operations, which are based on
Saab’s extensive expertise and experience in radar, elec-
tronic warfare and avionics, is to provide solutions to detect,
localise and protect against various types of threats. The
product portfolio includes air, naval and land-based sensor
and radar systems, self-protection systems for aircraft, heli-
copters, ships and vehicles, and defence electronics.
SALES, INCOME AND ORDERS
Orders received
Orders received in  increased strongly as a result of the orders
from FMV for the development of the Gripen system and strong
demand in the radar business, where several orders were received for
the GIRAFFE system (e.g., from Lockheed Martin and the Austral-
ian Defence Material Organisation). Orders were also received for
the weapon locating system ARTHUR, which has been delivered to
Czech Republic, Denmark, Greece, Norway, Spain, Sweden and the
UK. e increase was also due to an order received for an airborne
surveillance system, including the advanced ERIEYE radar system.
Orders received where the order sum was more than MSEK 
represented  per cent () of total order bookings.
Sales
Sales in  decreased mainly as a result of delays in major projects
compared to . Markets outside Sweden accounted for  per
cent () of sales in .
Income and margin
Despite structural costs, protability improved in . A major part
of the improvement resulted from a claim related to a nalised
project where Saab has reduced its estimated risk share.
In the fourth quarter, a restructuring charge of MSEK  was
recorded for restructuring measures announced on  November
. In connection with this, Electronic Defence Systems
announced that its sites in Gothenburg will be consolidated in 
and . Microwave and antenna construction in Järfälla will also
be terminated, while component construction and production
within the microwave area are consolidated in Gothenburg and Cen-
turion, South Africa. In addition, all operations in the Stockholm
area will be merged in Järfälla.
Operating cash flow
Operating cash ow improved in  due to project milestone deliveries.
ELECTRONIC
DEFENCE
SYSTEMS
16%
SHARE OF SALES
2010, %
SALES,
MSEK
OPERATING INCOME
AND MARGIN
2010200920082007
0
1,200
2,400
3,600
4,800
6,000
0
100
200
300
400
500
600
0
2
4
6
8
10
12
2010200920082007
Operating income, MSEK Margin, %
SAAB ANNUAL REPORT 2010 37
ADMINISTRATION REPORT > SAAB’S BUSINESS AREAS