Filed under: Saab, Earnings/Financials, Spyker
An accounting rule, among other things, is ostensibly to blame for Spyker posting a loss and having to declare negative shareholder equity with more liabilities than assets. According to Automotive News, the new owner of Saab had counted General Motor’s $326 million in redeemable preference shares in the company as equity, not a liability. So with the company having just got its factory going in October and only having sold 10,500 cars in the first six months of this year, the hard numbers are a loss of €139.1 million ($177.2M U.S.) on €243.1 million in sales ($309.8M U.S.).
The good news is that sales for the same period last year, before Saab’s plunge into full out cardiac arrest, were €4.1 million ($5.2M USD). The Swedish maker also has €280 million in cash (around $357M) and another €266 million ($339M) untapped from its European Investment Bank loan. Spyker has been saying for a while that profitability would come in 2012 and that it has enough cash and credit to get it there without needing to raise more money.
Its sales projections of 45,000 to 50,000 cars this year, however, might be on some downward pressure. Company CEO Jan Ake Jonsson said that they’re still looking to achieve that low number. Next year’s forecast and the company’s break-even point is understood to remain at 80,000 cars, with 120,000 as the long-term annual sales target.
[Source: Automotive News – sub req’d | Image: Olivier Morin/AFP/Getty]
Report: Spyker posts loss, expects to lose more originally appeared on Autoblog on Fri, 27 Aug 2010 18:00:00 EST. Please see our terms for use of feeds.
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