Spyker Drops as Saab Production Goal Cut, Loss Widens

Spyker Drops as Saab Production Goal Cut, Loss Widens
The Saab AB logo is seen in front of a Saab 95 automobile. Photographer: Chris Ratcliffe/Bloomberg

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.

Reversing Liquidation

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.”

Saab’s future is “going to be difficult,” said Crum, the Amsterdams Effectenkantoor analyst. “When Spyker bought Saab, the factory was totally shut down, and of course it took a huge effort to get things up and running again. On the plus side, the company reaffirmed its target for 2011 and 2012.”

Muller reiterated his goal today of listing the company on the Stockholm exchange by April 2011, saying Spyker “definitely” wants its shares to trade simultaneously in Stockholm and Amsterdam initially. The company will consider dropping the Dutch listing “if it turns out that the Amsterdam market is not sustainable because the trading volumes are not high enough,” he said.

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