Profits fall at BAE Systems
PROFITS at BAE Systems were hit last year by unresolved discussions with Saudi Arabia over the pricing of a Typhoon contract.
Europe’s largest defence contractor, said earnings before interest, tax and amortisation (EBITA) fell to £1.8bn in the year to the end of December, down from £2bn the previous year.
The company said sales fell 7% to £17.83bn and it warned that future growth would be hampered by “constrained” US and UK markets.
BAE employs around 15,000 people in the North West at sites in Lancashire, Cumbria and Cheshire. The group’s biggest operations are at its military jet manufacturing facilties at Warton, where around 5,500 people and Samlesbury which employs 4,500.
In a statement it said: “Growth opportunities in some segments of the US and UK markets are identified, but the overall outlook in both countries is expected to continue to be constrained.”
The company also said that discussions over the pricing of its Salam contract with Saudi Arabia to supply the Gulf state with Typhoon aircraft remained ongoing and that there would be an increase of 3p in underlying earnings per share should the negotiations conclude this year.
