BAE sees more predictable US defence spending

7th May 2014 07:08

Arms company BAE Systems said the outlook for defence spending in the US has become more predictable as it reported trading in line with expectations so far in 2014.BAE, which gets about half or more of its revenue from the US, said the defence budget eventually announced by Washington included spending cuts that were much as anticipated.BAE's business in the US has faced uncertainty as US lawmakers have struggled to do a deal over budgets amid political wrangling.The group, which makes military jets, nuclear submarines and warships, had also warned that failure to do a deal with Saudi Arabia over an order for 72 Eurofighter Typhoon jets could hit profits, although that has now been agreed.BAE, which failed in a bid to merge with the European aerospace giant now known as Airbus, said its UK business continued to benefit from long-term, stable maritime and military air contracts.It said its £42.7bn order backlog benefited from £9.3bn of international business won last year, was providing good visibility, while performance in its international activities was on track.Chief Executive Ian King said: "We continue to focus on programme execution and on enhancing efficiency and affordability."PW