BAE cautious over future as slump bites

BAE Systems at Warton.
BAE Systems at Warton.
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Defence company BAE Systems has forecast modest growth for the year ahead despite global cut-backs and a delicate negotiation over the price of Saudi Typhoons.

The company, which employs thousands at its manufacturing plant at Warton on the Fylde released an interim report to the stock market and held its AGM.

In it it said it would continue with its share buy-back scheme worth £1bn but this may be dependent on resolving a hold-up in the £7bn Salam deal to sell 72 Typhoons to Saudi Arabia.

The deal was first signed in 2007 and 24 of the Typhoon fighter jets have already been delivered to the kingdom.

Deliveries had stalled as the but have now been restarted.

At its AGM yesterday, the Board recommended a final dividend of 11.7 pence per share.

Ian King, chief executive, BAE Systems said: “BAE Systems has continued to perform in line with management expectations announced at the preliminary results in February.

“We continue to pursue growth in our international markets and have built on the strong international order intake in 2012 with a further £2.3bn of non UK/US orders received in the year to date, reflecting the strength of our broad based and diverse business.”

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