STOCKHOLM, Feb 9 Reuters Swedish defence equipment maker Saab notched up an 8 increase in fourthquarter operating profit and lifted growth targets as it continues to benefit from increased military spending by many nations since Russia39;s invasion of Ukraine.

Profit climbed to 1.42 billion Swedish crowns 135.6 million. The company cited strong performances from its dynamics division which includes missile systems and ground combat weaponry as well as its surveillance division which includes airborne early warning and naval combat systems.

For the period 20232027, it lifted its organic sales growth target to around 15 from a previous goal of 10.

However, for this year Saab, known to be cautious in its guidance, predicted organic sales growth of 1216, much lower than the 22.6 it had in 2023.

Shares in Saab rose 4 in Friday morning trade. They have more than tripled since Russia39;s invasion of Ukraine.

To contend with the jump in demand, Saab has ramped up investment in its business. Last year, it recruited nearly 2,500 new employees and increased capital expenditure more than 50.

That helped push its operating profit margin down to 8.8 from 9.5 during the quarter.

We see a further increase in investments as both attractive and crucial, as this will support our growth and longterm value creation, CEO Micael Johansson said.

In the latest quarter, order bookings climbed 5 to 31.5 billion crowns. For 2023, Saab39;s order backlog jumped 20 to 153 billion crowns.

It…