BAE Systems Says 2016 Off to a Good Start
May 04 2016 - 4:00AM
Dow Jones News
LONDON—BAE Systems PLC Wednesday said business in 2016 has
started well, allowing Europe's largest arms maker to confirm its
full-year earnings targets.
Deals secured in the first few months of the year included a
commitment by the U.K. and France to jointly build a combat drone
demonstrator under a £ 1.6 billion ($2.3 billion) program, a
contract from the British government to continue development work
on the future Type 26 combat ships, and a Kuwaiti order for 28
Eurofighter Typhoon combat aircraft. The Typhoon is jointly built
by BAE Systems, Airbus Group SE and Finmeccanica SpA, which secured
the Kuwait contract.
"Whilst economic and geopolitical conditions remain volatile, we
have started the year with good momentum and the business is
performing well," Chief Executive Offiicer Ian King said ahead of
the company's annual shareholder meeting later in the day.
BAE Systems said underlying earnings per share this year should
rise 5% to 10% over the 36.6 pence in adjusted underlying earnings,
which excludes some one-time tax benefits, reported for 2015.
BAE Systems is in the middle of a leadership transition process.
The company in February named oil industry executive Charles
Woodburn to the newly created post of chief operating officer,
making him the heir apparent to the CEO. The handover isn't
expected before next year.
BAE Systems also said the European missile joint venture of
MBDA, involving Airbus and Finmeccanica, also continued to secure
deals. The value of first-quarter deals to BAE, which owns 37.5% in
the partnership, was £ 182 million, the company said.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
May 04, 2016 03:45 ET (07:45 GMT)
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