Half year sales rise 4pc for BAE Systems
Sales increased by four per cent for BAE Systems to £9.87 billion in the first half of this year
In the six months to the end of June underlying earnings before tax were down 11 per cent from £999 million a year before to £895m
BAE, which has a joint venture at Hadley Castle Works, Telford, saw order intake rise from £8.41bn in the first half of 2019 to £9.33bn.
Rheinmetall BAE Systems Land (RBSL) is an independent joint venture business owned in majority by Rheinmetall (55 pe cent) and BAE Systems (45 per cent).
The directors have declared an interim dividend of 13.8p per share in respect of last year, payable in September, and in interim half year dividend per share of 9.4p, payable in November assuming that there are no major additional or unforeseen pandemic-related disruptions.
Chief executive Charles Woodburn said: "We have delivered a robust performance in the first half of the year, thanks to the efforts of all of our employees. We started the year from a strong position and we have taken actions to enhance our resilience, ensuring we continued to deliver against our customer priorities, whilst keeping our employees safe.
"Assuming no significant Covid-19 resurgence, we expect a good second half to the year. Demand for our capabilities remains high and we recognise our role not only in supporting national security, but also in contributing to the economies of the countries in which we operate."
Including two acquisitions made this year BAE expects group sales to increase by a low-single digit percentage compared to last year, as its sees increased volumes in F-35 aircraft, combat vehicles and growth in the electronic defence portfolio, offsetting the shortfall in commercial businesses.
Net debt is at £2.03bn, up from £743m at the end of 2019 following the £1bn bond issuance to fund the UK pension deficit, and the acquisition of the Airborne Tactical Radios business for £217m.
Order backlog has increased in the first half of the year to £46.1bn.
BAE employs a skilled workforce of 88,400 people in more than 40 countries including more than 400 in Telford.
