BAE Systems expects good growth
BAE Systems, which has its UK tank and combat vehicles division at Hadley Park, Telford, said today that it expects good sales growth this year.
It had a 'robust' order backlog at the half year of £37.3 billion, which its said underpinned confidence in the future prospects for the business.
Chief executive Ian King said: "Overall the company is operating in an improving business environment and we continue to win new orders, with good prospects for the future.
"In the short term, action to extend the production life of Typhoon aircraft by reducing the current production rate and a charge to impair the carrying value of the Williamstown shipyard in Australia will impact the group's 2015 results.
"Including a benefit of some 2p from adjustment of certain overseas tax provisions in the light of rulings received, the group's underlying earnings per share for 2015 are expected to be around 38p."
In the Unitded States, BAE has welcomed the recent Congressional budget approval which is expected to result in defence spend increasing above the previous Budget Control Act caps.
In the Middle East, an agreement for the supply of 28 Typhoon aircraft for the Kuwait Air Force was announced in September.
The Group today announced a proposal to reduce the workforce of the military air and information business by up to 371 posts. The lower production rate, together with the existing profile of contracted aircraft deliveries, is expected to result in Typhoon production sales reducing from approximately £1.3bn in 2015 to approximately £1.1bn in 2016.
BAE Systems will announce its financial results for 2015 on February 18.
