BAE Systems’ underlying earnings for the first six months have increased by 19 per cent to £979m, underpinning expectations for good growth for the full-year.
Sales increased by 28 per cent to £9,941m from £7,751m and like-for-like sales were up by six per cent. The group’s cash inflow from operating activities was at £448m and dividend rose 10.3 per cent to 6.4p per share.
However, the group’s upbeat results were overshadowed by its pension deficit, which rose by 36 per cent to £4,503m. Its assets reduced from £7,289m to £5,040m, largely as a result of the increased deficit and changes in reserves for the foreign exchange rate.
Earlier this month, the company’s BVT Surface Fleet secured a £3.5bn agreement with the Ministry of Defence (MoD) boosting it’s medium-term outlook. Overall, the group forecast results for the second half of the year to be strong as a result of increased deliveries of Typhoon and an order book visibility of £45bn.
BAE’s chief executive, Ian King, remained upbeat about the company’s prospects: ‘BAE Systems continues to perform well with performance in the first half of 2009, consistent with the group’s expectations of good growth for the full year.
‘BAE Systems’ strategy of investment in businesses with strong positions in attractive sectors of the defence and security market continues.
‘Despite the difficult economic environment and changes in priorities in many of its markets, the group continues to develop plans for growth over the medium term.’