STOCKHOLM -Swedish defence products company Saab will boost capacity to meet rising demand, it said on Friday after posting an increase in first-quarter profit and strong order intake.
Shares in Saab have soared 65% this year as a growing number of countries announce increased defence budgets as a result of intensifying geopolitical tensions and the conflict in Ukraine.
Saab, maker of the Gripen fighter jet and a range of military and civilian hardware, said that quarterly order intake grew 38% to 8.1 billion crowns.
The company added that it expects further supply chain challenges across the industry and would work to mitigate shortages and ensure delivery of components.
“To meet a further demand, we will also steadily increase capacity,” CEO Micael Johansson said in a statement.
Saab posted first-quarter operating profit of 654 million Swedish crowns ($68.8 million), up from 597 million a year earlier.
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.
The company maintained its full-year forecast of 5% organic sales growth and operating profit growth between 8% and 12%.
($1 = 9.5029 Swedish crowns)
(Reporting by Helena SoderpalmEditing by David Goodman)