BAE forecasts double-digit earnings growth for 2013

1st Aug 2013 07:06

BAE Systems hiked its half-year dividend and said it expected to produce double-digit earnings growth in 2013 providing it concludes its Saudi jet deal.Britain's biggest defence company reported underlying earnings fell 6.0% to £865m as it faced pressure from US defence spending cuts. Revenues rose to £8.0bn from £7.8bn after it restarted Typhoon aircraft deliveries to Saudi Arabia. And its order backlog stood at £43.1bn at the end of June up from £42.4bn at the end of 2012.Its net debt position at the end of June was £1.2bn, broadly in line with the same time last year.BAE lifted its dividend to 8.0p a share from 7.8p.Sandy Morris, analyst at Jefferies, said: "We see much in the first half result that should lend credibility and solidity to earnings in FY13 and FY14." TB