BAE '˜confident' as share earnings rise

The company which employs thousands making aircraft on the Fylde has said trading looks positive ahead of its end of year report this winter.

Friday, 7th October 2016, 12:05 pm
Updated Tuesday, 25th October 2016, 2:54 pm
The Eurofighter Typhoon in the shop window at the Farnborough Air Show this summer

BAE Systems said the Warton-built Typhoon gave the firm a lift earlier this year after it signed a ten year support deal for the RAF’s aircraft worth £2.1bn.

And it said it had high hopes of securing yet more sales deals for the Typhoon although no firm details were yet available.

In a trading update it said: “Export activity continues to be supported by the UK government and, although there can be no certainty as to the timing of orders, discussions with current and prospective operators of the Typhoon aircraft continue to support the Group’s expectations for additional Typhoon contract awards.

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“Discussions between BAE Systems, the UK government and the Saudi Arabian government are progressing to define the scope and terms of the next five-year Saudi British Defence Co-operation Programme.”

It added that on Wednesday it started work on the first of the Successor submarines replace the existing Trident missile subs in a contract with £1.3bn of funding committed for the initial production award.

It said: “In the UK we have made good progress working with our MoD customer on implementing the Strategic Defence and Security Review.

“Group underlying earnings per share are expected to be approximately five to ten per cent higher than last year’s adjusted underlying earnings per share of 36.6p.

“In surface ships we are progressing towards defining an overall Type 26 build contract and a contract is being finalised for the fourth and fifth new River Class Offshore Patrol Vessels.

“In the US the defence market outlook remains positive and the production ramp up on a number of the Group’s long term programmes is progressing to plan.

“A continuing resolution went into effect on October 1 under which the group does not expect any material disruption in the near term.

The Interim dividend of 8.6 pence per share will be paid on November 30.