BAE still negotiating on Typhoon deal

BAE Systems says it is continuing to hammer out the pricing for a deal to supply the Saudi government with 72 Typhoon fighter jets.

The defence giant employs around 10,000 staff and Salmesbury and Warton in Lancashire where parts are made and final assembly takes place.

“Whilst progress has been made through the course of these negotiations, issues remain to be resolved before contract pricing, acceptable to all parties, can be agreed,” said BAE.

It added: “Acceptable pricing terms remain the group’s driver to such an agreement, not the timing of the settlement. Should an acceptable agreement not be reached before the group’s full-year results announcement, the impact on 2012 trading guidance would be to reduce the group’s underlying earnings per share by approximately 3p per share.”

So far it has delivered 24 aircraft and more will be delivered next year.