The conflict in Ukraine will assist to drive new orders for Saab this 12 months, the chief govt of the Swedish defence group has mentioned, as western nations ramp up their provides of weapons to the nation.
Micael Johansson mentioned about 10 per cent of the corporate’s order consumption final 12 months was “strictly linked” to Ukraine, with the bulk coming by within the fourth quarter.
“There’s extra to return from Ukraine. Many international locations have to replenish their shares and possibly transcend that,” he mentioned.
Issues over depleted nationwide stockpiles are excessive as western nations have despatched weapons and different assist techniques to Ukraine, creating alternatives for defence contractors to safe extra orders.
Saab, which counts the Wallenberg household as its essential shareholder, produces the Gripen fighter jet in addition to a number of weapons techniques, together with sensors and ammunition.
It additionally makes the NLAW anti-tank missiles that Britain has been sending to Ukraine of their 1000’s. In December, Saab secured a SKr2.9bn ($278mn) order from the UK.
The corporate on Friday reported an increase in fourth-quarter working revenue as order bookings greater than doubled to SKr29.9bn from the identical interval in 2021.
Saab mentioned it anticipated natural gross sales development of 15 per cent in 2023. The sturdy outcomes despatched its shares up 9 per cent to SKr471 by Friday lunchtime.
Ukraine has been pushing for western nations to ship trendy fighter jets, together with Sweden’s Gripen, with President Volodymyr Zelenskyy reiterating his request throughout visits to the UK and Belgium this week. Up to now, most international locations have resisted, given Moscow’s threats that it will view such a transfer as escalatory.
Analysts on the Royal United Providers Institute, a UK think-tank, steered final 12 months that the Gripen could be a better option than another fighter jets, noting that since they’re lighter and cheaper, they is perhaps simpler to take care of and function from a number of Ukrainian airfields.
Any determination would relaxation with the Swedish authorities, which has mentioned the matter will not be on the agenda at current.
Johansson pressured it will be a “political query” for the federal government to resolve however mentioned Saab could be able to assist it. He agreed that the Gripen was “a straightforward system to coach on and to fly and function”.
Regardless of the sturdy working atmosphere, Johansson cautioned that supply chain challenges remained. The corporate has invested closely to extend its output, together with constructing extra stock to make sure it has the required parts and elements.
“We’re on our toes working each avenue to work by suppliers, but additionally going by a complete chain of sub-suppliers, so we have now management over the entire thing,” he mentioned, including: “It’s nonetheless a battle.”