Saab owner postpones 1H report

AP News
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Posted: Aug 26, 2011 11:01 AM
Saab owner postpones 1H report

Shares in Swedish Automobile, the owner of struggling car maker Saab, have plummeted after it postponed the release of its earnings figures for the first six months of the year, saying the report has yet to be completed.

In a brief two-line statement Friday, the Zeewolde-headquartered Dutch company said the results would be delayed by five days because the earnings report is incomplete.

The report is now due on Wednesday. Swedish Automobile, or Swan _ previously known as Spyker _ did not give any further reasons for the delay.

Shares in Swedish Automobile took a severe beating on the news, crashing more than 14 percent to euro0.49 ($0.71) on the Netherlands stock exchange. Some analysts said the postponement of the report indicated a drop in confidence in Swan and its ability to turn loss-making Saab's fortunes around.

Since the beginning of the year, more than 85 percent of Swan's share value has been shaved off.

Swedish Radio cited unnamed sources Friday as saying Saab is preparing an application for reconstruction.

Saab would not comment on the report, but said in a statement it was aware of the rumors and is still in talks with several parties for future funding. It underscored that it is "evaluating all available options" to secure the continuity of the brand, but did not specify what those options are.

Saab is currently experiencing extreme financial difficulties. Its Trollhattan-based plant has been idle for months and earlier this week it announced it would have to delay salary payments to staff for a third consecutive month as it is still running low on cash.

The Swedish tax authority is also in the midst of evaluating its assets for possible collection after it failed to pay several outstanding bills.

Swan brought Saab out of a liquidation process when it bought the Swedish brand from General Motors Co. in 2010.