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BAE sees slight rise in underlying earnings
11th Nov 2020 07:01
(Sharecast News) - Defence aerospace group BAE Systems said underlying earnings would be slightly higher than forecast as order intake levels moved ahead of original pre-Covid planning.
The company on Wednesday said its large order backlog and incumbent programme positions "are expected to lead to strong and profitable top line growth with increasing cash conversion in the coming years". It had previously guideded underlying earnings per share to be a mid-single digit percentage lower than 2019's 45.8p.
It added that results would also be boosted by a good operational performance and expected lower tax rate offsetting foreign exchange headwinds.
"The recent German parliament announcement confirming the approval of the purchase of an additional 38 Typhoon aircraft is significant for the consortium, and we are working with Eurofighter and our industrial partners to conclude the relevant contracts in the near future," BAE said in a trading statement.
It added that the outlook for its UK business was stable as Brexit talks continued without any sight of a trade deal. The group said it has limited UK-EU trading and the majority of the workforce are British nationals with any resulting near-term impacts across the business likely to be limited.
Defence revenues were centred around long-term, contracted and critical defence programmes in the air and maritime sectors, BAE said.
The company on Wednesday said its large order backlog and incumbent programme positions "are expected to lead to strong and profitable top line growth with increasing cash conversion in the coming years". It had previously guideded underlying earnings per share to be a mid-single digit percentage lower than 2019's 45.8p.
It added that results would also be boosted by a good operational performance and expected lower tax rate offsetting foreign exchange headwinds.
"The recent German parliament announcement confirming the approval of the purchase of an additional 38 Typhoon aircraft is significant for the consortium, and we are working with Eurofighter and our industrial partners to conclude the relevant contracts in the near future," BAE said in a trading statement.
It added that the outlook for its UK business was stable as Brexit talks continued without any sight of a trade deal. The group said it has limited UK-EU trading and the majority of the workforce are British nationals with any resulting near-term impacts across the business likely to be limited.
Defence revenues were centred around long-term, contracted and critical defence programmes in the air and maritime sectors, BAE said.