In short – this is all pretty expected. The only variations from expectations are mentioned by Jan-Ake Jonsson near the bottom.
About the debt issue, which TTAC have typically made a big issue out of, this is just an accounting issue. Spyker’s ‘debt’ levels insofar as the Saab deal is concerned, are the same as when they bought Saab back in February. GM has a chunk of preference shares in the new operation, which are technically ‘debt’ rather than active equity, which is why GM don’t have a say in how Saab and Spyker are operated. That’s the simple version.
As Victor Muller mentions at the bottom, it’s just an accounting issue.
AMSTERDAM, Aug 27 (Reuters) – Spyker (SPYKR.AS), the loss-making Dutch sports car maker that acquired Saab from GM earlier this year, posted another loss on Friday, trimmed Saab’s sales targets and said it would lose money through next year.
Shares plunged 10.4 percent in early trading, leading all Amsterdam decliners, as the company acknowledged it may have been too optimistic on Saab’s earlier targets. The stock has lost two-thirds of its value since Spyker announced the deal to buy Saab in January.
But Spyker Chief Executive Victor Muller said the company had sufficient liquidity and would not have to recapitalise despite reporting negative shareholders’ equity.
Spyker, a money-losing manufacturer that produced a handful of high-end sports cars annually, stunned markets when it launched its bid for Saab. While it pulled off the deal, its complicated financing has raised questions about whether it can sustain itself while it turns the Swedish brand around.
The company said on Friday it had net cash of 280 million euros and undrawn facilities of 266 million euros from a European Investment Bank loan. Together, Muller said that would carry the company through to its 2012 profitability target.
‘LITTLE BIT OPTIMISTIC’
Spyker posted a loss of 139.1 million euros ($177.2 million) on sales of 243.1 million euros. The company did not provide year-earlier comparisons.
Spyker said its near-term sales goal for Saab is 45,000 units this year. For 2011 it forecast sales of 80,000 units and it kept a long-term goal for sales of 120,000 cars per year.
Saab CEO Jan Ake Jonsson said last month he was confident it could reach a goal of selling 45,000 to 50,000 cars this year.
“Maybe we were a little bit optimistic” about the high end of the range, Jonsson told reporters, adding that Saab’s restart when it came out of liquidation took longer than expected.
Jonsson added he was optimistic about the newly launched Saab 9-5, which is just now arriving in the United States and ramping up in Europe after the summer holidays. He said it would take about a month to get a sense of how the car was performing.
The loss was published two days after the group said its debts had become larger than its assets. Muller said the issue was purely an accounting one, having to do with the way certain items are classified under international rules as opposed to Swedish accounting standards.
He also said Spyker was still pursuing a second share listing in Stockholm, though it could eventually consider de-listing from Amsterdam as well.