Saab owner posts nearly $220 million loss in Q2

by **hlk** Thu 01 Sep 2011, 18:08

STOCKHOLM (AP) - Saab owner Swedish Automobile NV says its losses widened further in the second quarter and that it still hasn't secured the funding needed to keep the ailing car brand afloat.

Swedish Automobile - previously known as Spyker - on Wednesday reported a second-quarter loss of 152 million (nearly $220 million) compared with a loss of 60 million in the same period last year.

Revenues shrank to 102 million ($147 million) from 198 million in the second quarter 2010.

The report will likely disappoint investors who had hoped Saab would announce the receipt of more funds Wednesday. Shares in Swedish Automobile had previously closed up 13.24 percent at 0.77 ($1.10) on the Amsterdam Stock Exchange.

Saab hasn't yet paid this month's wages to staff, which were due Aug. 25, and the Swedish Enforcement Agency is evaluating the company's assets for possible collection after it failed to pay several outstanding bills to suppliers.

If Saab, whose Trollhattan-based plant has been idle for months, doesn't manage to raise more money before Friday, trade unions could initiate bankruptcy proceedings.

Swedish Automobile CEO Victor Muller on Wednesday offered his "sincere apologies" to staff for the delayed wages and said the second quarter had been "unbelievably tough."

"Investor interest exists in Saab Automobile based on a continued belief in the long-term prospects for the brand and the company," Muller said in a statement.

"Right now, the focus of Saab management is on working as hard as possible to bring the company back into calmer waters by significantly strengthening our financial position," Muller said. "We are evaluating all available options in order to secure continuity of Saab Automobile."

Swedish Automobile brought Saab out of a liquidation process when it bought the Swedish brand from General Motors Co. in 2010, but has struggled to raise enough funds to keep the company running.

In the past months, it has tried to raise more cash through loans and various agreements with investors, but some of the funds committed by investors have not yet been paid, Saab said.

The company said it forecasts "a substantial net loss for 2011."