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Zeewolde, the Netherlands, November 30, 2011 - Swedish Automobile N.V. (Swan), a holding company that owns subsidiaries which produce and sell premium automobiles under the Saab and Spyker brands (together referred to as the “Group"), today announces its interim results for the third quarter of 2011 ended 30 September 2011. The Group is listed on NYSE Euronext Amsterdam (ticker symbol SWAN).
HIGH-LIGHTS
- Saab Automobile AB (Saab Automobile), Saab Automobile Powertrain AB and Saab Automobile Tools AB entered voluntary reorganization under Swedish law
- Continued discussions underway with key Saab Automobile stakeholders, Zhejiang Youngman Lotus Automobile Co.,Ltd. (Youngman) and Pang Da Automobile Trade Company Ltd (Pang Da) about a transaction which will allow for the necessary investments and secure the longer term future and stability for Saab Automobile
- Conditional agreement reached on sale of Spyker Automotive business to North Street Capital, LP with net proceeds for Swan of EUR 32 million
- Filing for administration of Saab GB Ltd in November to give the company the necessary protection against creditors until it secured the necessary funding for the continuation of the company
- Continuing the voluntary reorganization process at Saab Automobile, continue the development of the revised business plan and restarting sustainable production top priorities for Saab Automobile management
- Depending on the outcome of the negotiations to sell Saab Automobile and Spyker Automotive, several possible scenarios for the future of Swan exist, including but not limited to a voluntary liquidation of Swan.
FINANCIAL AND OPERATIONAL DEVELOPMENTS Q3 2011
- Q3 2011 sales of € 75.8 million, Q3 EBIT of € -87.5 million
- Cash generated from operations in Q3 amounts to € -81,1 million
- Sales performance seriously affected by production stoppages and tight liquidity situation during third quarter
- Efficiency improvement initiative launched as part of voluntary reorganization process, in order to create more flexible and competitive cost structure within the Saab Automobile business
- 1,235 cars sold (wholesale) in Q3 2011, compared to 8,540 in Q3 2010, a decrease of 86%
- 2,775 cars sold (retail) in Q3 2011, down 63% compared to 7,430 in Q3 2010
- 130 cars produced in Q3 2011, compared to 9,777 in Q3 2010, a decrease of 99%
Victor R. Muller, CEO of the Group and CEO and Chairman of Saab Automobile, said: “From an operational point of view, the third quarter has been very tough. Since Saab Automobile´s production facility in Trollhättan was basically not in operation throughout the whole reporting period, we have been unable to provide dealers and customers with the cars they have ordered and stock levels around the globe continued to fall. As in the second quarter, this situation seriously affected our sales performance and overall operating performance. “Nevertheless, we are working hard to secure a better future for Saab Automobile. The company is currently in the
middle of a voluntary reorganization process under Swedish law, which is aimed to enable us to prepare for a restart of production."
“With regards to the future of Swan, we still face much uncertainty in completing a transaction to structure the investments by Youngman and Pang Da, either through the sale of Saab Automobile and Spyker, or alternative structures which can secure the necessary approvals. If we manage to finalize such transaction, we will consider all options for the company, including an orderly wind-down."
The third-quarter full report is available for download at media.saab.com (PDF)
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