BAE's full-year profits, order book rise; seeks organic growth

Source: Stock Market Digital

Date :21/02/2008 09:45:57

BAE Systems Plc announces record order book as full-year sales rise 14 percent.

The British defence group said its order book increased by 22 percent to £38.6 billion, driven by winning a contract for Typhoon fighter aircraft from Saudi Arabia and orders for mine-resistant ambush-protected (MRAP) vehicles for use in Iraq.

The US acquisition of Armor Holdings, a major manufacturer of military vehicles and body armour and strong trading across the all business segments also helped lift the company.

"We have excellent forward visibility and a further year of good growth is anticipated in 2008," BAE said in a statement Thursday.

Chief Executive Mike Turner said he could "see programmes spread out" over longer periods of time.

Full-year 2007

For the year, Europe's biggest defence company reported earnings before interest, tax and amortisation (EBITA) of £1.78 billion, on sales up 14 percent to £15.7 billion.

Operating profit rose twelve percent to £1.18 billion while net income fell to £922 million from £1.64 billion in 2006, when the group sold its stake in European aircraft manufacturer Airbus.

Global strategy

Commenting on the results, Mr. Turner said that growth was “underpinned” by the successful application of BAE’s global strategy.

“Our large order book and consistently good programme execution gives us unprecedented future visibility. This provides us with a high degree of confidence that we will continue to create value for our customers, shareholders and employees,” he said.

He also told reporters BAE was ready to sign a planned ship-building joint venture with VT Group Plc once Britain puts the final seal on a deal for two new aircraft carriers.

February 21, 2008

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