STOCKHOLM, Sweden (AP) -- Shares in Saab AB plunged Thursday after the Swedish aerospace and defense company cut its outlook for 2008, citing delays in completing orders and uncertainties surrounding Swedish defense spending.
The company said it now expects 2008 organic sales growth of between 3 and 4 percent, compared with 5 percent previously and cut the operating margin forecast to 8 to 9 percent from 10 percent.
Saab shares fell 10 percent to 144 kronor ($21.98) in Stockholm.
"Different factors have had and continue to have an adverse impact on Saab, mainly through delays in order intake for major international projects and uncertainties in respect of Swedish defense material spending," the company said in a statement.
"Delays in ongoing major commercial aircraft projects have led to a revised, lower production plan in Saab's aerostructures business. Also, market development for the technology business in South Africa is weaker than anticipated," it added.
Saab also said continued high marketing expenses for its Gripen fighter, "due to strong market interest," is also dampening the outlook.