Press Information: Parts AB reports increased 2013 first quarter sales

  • Saab Automobile Parts AB shows an increase in sales during the first quarter compared with the same period in 2012
  • Net sales increased by 24 percent and operating profit amounted to kSEK 35,964
  • The company continued to expand its business during the period by starting subsidiaries in Norway and Finland and has also strengthened the network of Authorized Repairers

Read morePress Information: Parts AB reports increased 2013 first quarter sales

Notes from Spyker’s Quarterly Results (and News Snippets)

Spyker’s Quarterly results were released this morning, and several details we already knew about were covered. Sadly as Rune covered earlier, Saab had an operating loss of €79 million and a €72 million net loss. This compares to last year when the operating loss for the entire year was €140 million.

On China:

We have opened up alternative routes to fund the company mid- and short-term including but not limited to discussions with Chinese car manufacturers, the discussions with some of which had already been ongoing for several months. We are hopeful that these discussions will result in a solution very shortly so we can resume production. We will make it our top priority to restore the confidence of our suppliers, dealers and partners and apologize to them as well as to our dedicated employees for the disruptions that occurred.

Keep in mind as Tim confirmed exclusively last night and the Wall Street Journal elaborated on this morning, Saab is in talks with three Chinese automakers– Great Wall Motor Co., China Youngman Automobile Group Co. and Jiangsu Yueda Group Co.

On the debt:

We have made a serious endeavour to carve out the Saab owned real estate from the collateral Saab provided to the National Debt Office (NDO) as security for the € 400 million loan from the European Investment Bank (EIB). By reducing the collateral value by € 67 million that loan would be reduced by no less than € I20 million to € 280 million. In spite of consent from NDO we have yet to reach agreement with EIB on the terms of their consent to this transaction.

Saab’s current cash position:

The total cash position amounts to € I29.9 million and comprises € 35.I million free available cash and € 94.8 million reserved cash (escrow for pensions, tooling payments and other items related to business operations).

Saab’s official statement about the supplier stoppage and cash crunch:

Due to tight liquidity at the end of QI 20II caused by seasonally low sales volumes (to the extent that these were not fully off-set by cost reductions and working capital improvements),  heavy investments in product  launches and future product development, the Group’s  cash position is tight and therefore continues to be monitored very closely by Management. To ensure adequate liquidity both in the short term and for the remainder of this year, Management is currently  raising funds from current  shareholders  and pursuing various initiatives to improve the Group’s  liquidity and strengthen the Group’s  balance sheet going forward,  including – but not limited to – below Saab Property  transaction.

The EIB provided a € 400 million loan to Saab Automobile as a project finance facility for funding of certain development projects. This loan is guaranteed  by the Swedish National Debt Office (NDO). At the end of QI 20II, € 2II million was drawn under this facility, leaving € I89 million as undrawn facility. Saab Automobile has reached agreement with the Swedish government  and the NDO to release collateral pledged to NDO in return  for a reduction of the guarantee amount from € 400 million to € 280 million. Saab Automobile intends to enter into a sale and lease back agreement of its Trollhattan based real estate to refinance this released collateral by selling shares  in Saab Automobile Property AB (Saab Property) to an investor. If this transaction  is to be completed Saab Automobile will still be able to draw up to € 280 million from the EIB loan, a € 29 million drawdown  is expected  during the beginning of Q2. The intended sale and lease back transaction of Saab Property  is subject to approval of the EIB, which has been granted on conditions not yet acceptable to Saab Automobile. Saab Automobile is still in discussions  with the EIB on these conditions and at this time it is unclear if and when  it can complete the Saab Property  transaction.

Also according to the previously mentioned WSJ article:

Spyker said its first-quarter earnings before interest and tax was a loss of EUR79.4 million and reiterated 2011 will be a loss-making year.

“It is unclear at this time what the consequence of the recent production stoppages and funding issues will be for our full year 2011 forecast but it is realistic to assume that realizing our 80,000 cars sales forecast is no longer feasible,” Muller said.

Ironically, the company said March had been the best month in terms of sales since Spyker acquired Saab in February 2010.

Spyker still is awaiting approval from the European Investment Bank to release collateral for loans so that it can ease its liquidity crisis. The company hopes to sell and lease back Saab’s real-estate assets so that it can raise cash.

“The talks with the EIB progress very slowly and I have no idea when a deal will be reached,” Muller told Dow Jones Newswires.

The collateral backs state guarantees to secure up to EUR400 million in EIB loans. Spyker wants to repay the EIB loans so that it is free to pursue its own strategy.

Muller expressed his regret for the disruption. “We will make it our top priority to restore the confidence of our suppliers, dealers and partners and apologize to them as well as to our dedicated employees for the disruptions that occurred,” he said.


Full text of the quarterly statement after the break, tables to follow. For the PDF version, click here.

Read moreNotes from Spyker’s Quarterly Results (and News Snippets)

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