Saab owner Spyker reports $176 million loss in H1, Saab’s sales down more than 50 percent

Saab owner Spyker posts H1 loss as sales slump

AMSTERDAM — Spyker Cars NV, the owner of Saab Automobile AB, reported a hefty loss Friday for the first half of 2010, as the tiny company absorbed the impact of purchasing the much larger Saab when it was on the verge of liquidation.

Spyker’s net loss was euro139 million ($176 million), up from a loss of euro8.7 million a year ago. Sales jumped to euro243 million from euro4.1 million.

The figures reflect the consolidation of loss-making Saab from Feb. 23.

Saab sold 10,500 cars in the first half of 2010, down from 24,300 in the same period a year ago, in the first glimpse into the company’s performance since tiny Spyker took it over from General Motors.

“Given the effective shut down in Saab’s operations during the first months of 2010, the first half year cannot be seen as representative in terms of volumes and operating results, but as a necessary episode from which Saab will build going forward,” the company said in a statement.

Spyker CEO Victor Muller forecasts selling 45,000 Saabs this year, 80,000 in 2011 and reaching 120,000 and profitability in 2012.

He said this rise in sales would be driven by the introduction of two new models next year.

Asked whether customers might be reluctant to buy a Saab, given the mountain of debt Spyker took on to buy Saab and losses that are likely to continue through at least 2011, he said no.

Such concerns are understandable, “but this is a company with access to a billion in cash” and credit, he said in a telephone interview.

“What we have done in the first half-year is go out, bringing the gospel that Saab is here to stay. We will never disappoint a customer by not being able to honor our warranty obligations,” he said.

Spyker, the Dutch niche luxury car maker which in its 11-year history never made a profit, confounded critics by buying Saab from General Motors in January for $74 million (euro52 million) — less cash than Saab had on its books.

Saab had lost euro400 million on sales of euro1 billion in 2009, prompting GM to sell.

Spyker also received a euro400 million loan from the European Investment Bank, backed by the Swedish government, which hopes to hold on to Saab jobs.

Muller said the company has added around 500 employees since the Saab buy and now employs 4,000.

“In just a few months we have delivered several critical operational milestones ranging from restarting our manufacturing and product development to rebuilding our distribution network and undertaking the global launch of the all new Saab 9-5 model, which was extremely well received,” said Saab CEO Jan Ake Jonsson.

Spyker said it has drawn down euro134 million of the euro400 million loan so far. It says that it has euro546 million in liquidity.

In addition to Spyker’s other debts, GM holds bond-like preferred shares in Saab worth $326 million that pay 12 percent interest beginning in July 2013, limiting upside for Spyker shareholders if Saab survives.

Spyker’s balance sheet says that at the end of the half year, it had a negative net worth of euro126 million.

“The group expects to end the year 2010 with sufficient liquidity to support its operations,” the company said.

Shares fell 8.9 percent in Amsterdam to euro2.186. Spyker hopes also to list in Sweden.

Spyker did not give information about sales of its own luxury cars, which it had hoped to increase by taking advantage of Saab sales channels. In the first half of 2009 it sold 21 cars.

Muller said Spyker sales were “immaterial.”

“Spyker has become Saab,” he said.