Spyker Drops as Saab Production Goal Cut, Loss Widens
October 29, 2010
by Ola Kinnander
Spyker Cars NV, the Dutch supercar maker that bought Saab Automobile this year, fell the most in nine months in Amsterdam trading after cutting the Swedish unit’s production goal as the third-quarter loss widened.
Spyker dropped as much as 1.09 euros, or 28 percent, to 2.84 euros, the biggest intraday decline since Jan. 28, and was down 18 percent as of 12:57 p.m. That pared the stock’s gain this year to 51 percent, valuing the Zeewolde, Netherlands-based manufacturer at 64 million euros ($89 million).
The net loss was 39.9 million euros compared with a 4.06 million-euro deficit a year earlier, Spyker said today in a statement. Saab will build 30,000 to 35,000 cars this year, down from its plan in August to make 45,000 vehicles this year and an initial target of 50,000 to 60,000 cars.
“It’s disappointing they had to adjust the production target for the second time,” said Martin Crum, an analyst at Amsterdams Effectenkantoor BV who recently started covering Spyker and will “soon” have a recommendation on the shares. “That’s the big negative that’s pushing the stock down.”
Saab was on the brink of collapse until Spyker bought the Trollhaettan-based carmaker from General Motors Co. on Feb 23. The brand resumed production in March after a break of two months, and has been focusing on setting up dealerships and introducing the 9-5 sedan. Spyker reiterated that it aims to become profitable in 2012 as Saab sells 120,000 cars a year.
The reduced target for 2010 stems from Saab taking longer than expected to recover from the plant shutdown and the reversal of liquidation proceedings, Saab Chief Executive Officer Jan-Aake Jonsson told reporters on a conference call. Restoring ties with suppliers contributed to delays in the 9-5’s rollout, he said.
“You will not sell product that’s not on the showroom floor,” Spyker CEO Victor Muller said on the call. “It’s been a tremendous fight to fill the pipeline. This is now finally starting to happen.”
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