BAE Systems on track for 2021 targets after strong start
Defence giant BAE Systems said that it was on track to hit sales and earnings forecasts for 2021.
The firm, a major supplier to the Ministry of Defence and other governments around the world, has said that it is well positioned for growth in the coming years due to plans to increase defence spending around the world.
BAE, which has a joint venture at Hadley Castle Works in Telford, known as Rheinmetall BAE Systems Land (RBSL) and specialising in land combat vehicles, is forecasting sales growth of five per cent to seven per cent and underlying operating profit growth over 10 per cent.
After last year’s disruption, BAE said that the performance of its US ship repair business had improved, and that it had ramped up combat vehicle production.
Likewise, its applied intelligence division had had a good start to the year, it said, after a restructuring programme.
Its air, maritime, electronic systems and intelligence and security divisions all continue to perform strongly, BAE added.
Chief executive Charles Woodburn, who was recently the subject of a shareholder revolt over a bonus deal designed to keep him at the company, said: “Our good operational performance underlines our confidence in the full year guidance for top line growth and margin expansion and our three-year cash targets.
“Strategically, our geographically diverse portfolio is aligned to growing defence budget areas; we’re ramping up investment in self-funded research and development aligned to customer focus areas and we’re leveraging our leading capabilities in evolving markets to ensure we’re increasingly well placed to deliver for all our stakeholders.”
Earlier this month it was announced RBSL is creating 200 new jobs at its Telford site after being awarded an £800 million contract with the MoD to create a fleet of 148 Challenger 3 main battle tanks for the British Army.
