BAE Systems maintains guidance

29th Jul 2010 07:01

Defence firm BAE Systems continues to expect revenue growth in 2010 despite the threat of cutbacks in government spending.The company saw sales grow 9% in the first half of 2010 to £10,643m from £9,747m the year before. On a like-for-like (LFL) basis, sales increased by 7%. Underlying earnings before interest, tax and amortisation (EBITA) improved 14% to £1,114m from £978m a year earlier, while underlying earnings per share jumped to 20.4p from 17.9p.Growth in underlying EBITA on a LFL basis was 12%. As anticipated, there was a cash outflow from operating activities of £185m.The group's net debt at 30 June 2010 was £1,202m (2009 £316m), a net outflow of £1,605m from the net cash position of £403m at the start of the period.The order book eased slightly to £43.6bn from £44.3bn at the end of June 2009.The interim dividend has been boosted to 7p from last year's 6.4p.Following a review of markets and customers' needs in the US, changes to the group's organisation are being implemented to realign BAE Systems, Inc. to better deliver its strategy. Reductions in costs, benefiting both the group and its customers, will flow from a simplified organisation, the company said. In aggregate, and despite a planned lower level of land vehicle activity, the group continues to expect growth for 2010, based on constant exchange rate assumptions.