BAE on course for rise in revenues
BAE Systems, which employs more than 15,000 in the North West, is expecting earnings to rise marginally with 2014 earning broadly in line with forecasts.
The company – Europe’s biggest defence contractor – posted earnings per share (EPS) of 38p, compared with a forecast of 37.7p.
This was in line with its guidance for to 5 to 10% reduction compared to the year before.
Last year’s drop was attributed to the absence of a one-off benefit from a price settlement with Saudi Arabia over the sale of Eurofighter Typhoons, which had boosted 2013, the conclusion of some contracts in the US and currency headwinds.
BAE says its earnings have been hit by cuts to defence budgets in the US and the UK, which are its two biggest markets.
But it also said in 2015 EPS would be marginally higher as a result of expected orders for naval equipment and aircraft, including the Typhoon.
Chief executive Ian King said BAE was well-positioned to deliver shareholder value, despite the outlook remaining uncertain because of military budgets.
He said: “In the UK, we benefit from long-term contracts, notwithstanding continued pressure on public spending.
“We believe U.S. budgets are now relatively stable, with some early indications of a modest improvement in 2016.”
BAE has sites in Lancashire and Barrow.
