Export growth key for BAE says earnings dip
BAE Systems, the defence group which is one of Lancashire’s biggest employers with some 11,000 staff at two manufacturing sites, has reported a 6% dip in first half earnings.
The UK’s largest defence contractor, which has been impacted by budget cuts in key markets such as the UK, said pre-exectional earnings EBITDA) was £865m in the six months to the end of June. Sales nudged up 1% to £8.45bn.
The company said its order book rose to £43.1bn and increased its interim dividend by 3% to 8p per share.
In Lancashire BAE makes the Eurofighter Typhoon, F35 and Hawk jets at two Military Air and Information operations in Warton and Samlesbury near Preston.
Reviewing performance in the period Chris Boardman, managing director of the MAI division said: “On the back of the orders from the Kingdom of Saudi Arabia and Sultanate of Oman last year there is a renewed spirit of optimism in the business and a real focus on doing all we can do to secure more export orders.
“We have several on-going campaigns for both Typhoon and Hawk and with each we have the support of the UK Government which is crucial if we are going to be successful.
“The Sultanate of Oman order for 12 Typhoon and 8 Hawk aircraft helps sustain thousands of jobs in the region gives us a stable base to build from and fits in with our strategy to make MAI a truly international business.
“We are continuing to support the Enterprise Zone activity at Warton, Samlesbury and in Brough, which has already helped provide employment opportunities in the area and in the future will create many more jobs.
“It’s testament to all our staff that we have managed to deliver on our commitments throughout this difficult period and managed to secure export orders.”
