BAE Systems forecasts more growth after sales rise
Defence giant BAE Systems has posted strong results and forecast further sales growth in 2022 after reporting a 13 per cent increase in 2021 core earnings.
The builder of combat ships, submarines and fighter jets said orders exceeded expectations and expects another year of good orders in 2022.
It said the “uncertain global environment” and “complex threats” that currently face the world’s major powers will boost its business in 2022.
2021 underlying earnings before interest and tax (EBIT) increased to £2.2 billion on sales up five per cent to £21.3 billion.
Pre-tax profit was £2.11 billion compared with a profit of £1.6 billion for 2020. Revenue rose to £19.5 billion from £19.2 billion the year before.
The firm said its 2021 sales were bolstered by strong demand for its “electronic warfare systems” and growing “cyber and intelligence” budgets.
BAE has a joint venture at Hadley Castle Works in Telford, known as Rheinmetall BAE Systems Land (RBSL), which specialises in land combat vehicles.
Chief executive Charles Woodburn said: “Our strong results reflect the outstanding efforts of our employees who have continued to adapt and work closely with our customers, suppliers and trades unions to deliver capabilities which keep nations and citizens safe.
“We are continuing to evolve our business, increasing our investments in advanced technologies to deliver differentiated solutions to meet our customers’ priorities.
“Our diverse portfolio, together with our focus on programme execution, cash generation and efficiencies, is helping us to navigate the challenging operating environment, meaning we are well positioned for sustained top line and margin growth in the coming years.”
BAE, whose main customers are the United States, Britain and Saudi Arabia, forecast sales growth of two to four per cent in 2022.
It said growth was expected in the Electronic Systems, Air, Maritime and Cyber & Intelligence segments, whilst Platforms & Services (US) was expected to be stable.
