UPDATE 3-Spyker sees further losses, cuts 2010 target

* Cuts 2010 sales target, keeps 2011/12

* Q3 operating loss 50 million euros vs 3.4 mln loss yr ago

* Negative equity 169 mln, sees no need to recapitalise

* Still plans Stockholm listing

* Spyker shares fall 22 pct to 3.1 euros, index down 0.2 pct

(Adds details from conference call, share and analyst reaction)

By Marcel Michelson

AMSTERDAM, Oct 29 (BestGrowthStock) – Spyker (SPYKR.AS: ), the
loss-making Dutch sports car maker, which acquired much larger
Saab earlier this year, sees no escape from losses until 2012 as
it ramps up sales of the Swedish premium brand.

Saab’s production was severely disrupted, and its sales
target cut to 30,000-35,000 units, from 45,000 previously,
because it had to rebuild its supplier base after the deal.

The group said on Friday it was turning to Russia and China
to sell a range of new premium Saab models, including a sports
utility vehicle, and a pick-up truck, that would generate higher
margins than under General Motors ownership.

Spyker shares, which are very volatile, fell sharply, and
traded 22.3 percent lower at 3.05 euros by 0915 GMT, compared
with a 52-week high of 6.8 euros on Jan. 27, and a low of 1.49
euros on Nov. 6, 2009. The share made big gains following the
September announcement of an engine pact with BMW.

The auto index (.SXAP: ) was down 0.15 percent.

Saab’s new 9-5 model is positioned to rival the Audi
(VOWG.DE: ) and BMW (BMWG.DE: ) 5 series, and Saab has reintroduced
this model to showrooms in Canada, and the United States after
it separated from GM. The 2011 version of the 9-5 will have more
engine versions, such as diesel, and other options.


The group is sticking to its 2011 target of 80,000 cars and
a 2012 goal of 120,000, which group Chief Executive Victor
Muller called “conservative” and “realistic”.

Saab Chief Executive Jan Ake Jonsson said the sales momentum
was improving and he was confident of being in the black in

“The key thing is to have models in the showroom, customers
will come when they actually see the cars on the street, and at
the dealerships,” Muller told a conference call, adding the
Spyker activities made up only 1-1.5 percent of the group.

He said the group was planning a Stockholm secondary listing
in April, and could eventually leave the Amsterdam Bourse.

The former Spyker sports car activities would have to become
profitable as well, as Muller said the group could not afford

He said there was no plan to issue shares, to prevent
dilution of current investors. Muller, Abu Dhabi fund Mubadala
and Gemini Investment Fund hold 61.4 percent in total.

“Investors have probably been too enthusiastic on the spur
of the moment,” said Theodoor Gilissen analyst Tom Muller.

Martin Crum of AEK said the downgrade of the 2010 sales
target was “sharp” and would affect the full-year results.


Spyker said it expected to end 2010 with sufficient
liquidity to support its operations, and saw no need to
recapitalise despite a negative equity position under IFRS
accounting rules related to the classification of redeemable
preference shares as debt instead of equity.

At the end of the third quarter, liquidity was 450 million
euros, including undrawn European Investment Bank facilities of
255 million euros.

Spyker posted a third-quarter operating loss of 50 million
euros on sales of 275 million euros, and had a cash outflow of
115 million euros over the first nine months. The nine-month
loss was 159 million euros.

Spyker said it was still finalising its valuation of the
Saab assets, and that it was “not unreasonable” to expect the
value to be adjusted upwards. Spyker bought Saab for a total of
$400 million in February, of which $74 million in cash.
(Additional reporting by Gilbert Kreijger; Editing by Sara Webb
and Sharon Lindores)
($1=.7205 Euro)

UPDATE 3-Spyker sees further losses, cuts 2010 target