Pre-tax profits up 14pc for BAE Systems
Defence company BAE Systems, which has a combat vehicles plant at Hadley Park, Telford, posted a 14 per cent rise in annual pre-tax profits and said that it expects earnings to grow in 2019.
Profit increased to £1.22 billion for 2018 from £1.07bn a year earlier on sales which fell from £18.48bn to .£18.40bn.
For 2019, the group expects underlying earnings per share to grow by mid-single digits compared to 42.9p per share in 2018.
BAE Systems chief executive Charles Woodburn said: "The group made good progress in strengthening the outlook and geographic base of the business, with a number of significant contract wins.
"The defence order backlog is now at a record high with visibility on many of our key programmes through the next decade.
"Delivering a strong operational performance and continued investment will enable us to meet our growth expectations and underpin the long term."
BAE Systems' order intake was up from £20.25bn to £28.28bn..
For this year sales are expected to show mid-single digit growth driven by a number of electronic warfare contracts.
In aircraft they are expected to be 10 per cent higher for activity on the new Qatar Typhoon and Hawk programme and the continued ramp-up on F‑35.
For maritime sales are expected to be stable. Activity levels on the carrier programme will decline as it moves towards completion. This is expected to be largely offset by increases on the Dreadnought submarine and Type 26 programmes.
BAE Systems has a skilled workforce of 85,800 people in more than 40 countries, including around 400 in Telford,
Last month BAE Systems entered into an agreement with Rheinmetall to create a joint UK-based military land vehicle design, manufacturing and support business subject to regulatory approvals.
Joining forces with Rheinmetall will bring the strength of both businesses together to be more competitive in the UK and international markets whilst maintaining many jobs in the UK.
Rheinmetall will purchase a 55 per cent stake in the existing BAE Systems UK-based combat vehicles business for £28.6m, with BAE Systems retaining 45 per cent.
On Brexit BAE said that there is relatively limited UK-EU trading and movement of EU nationals into and out of BAE Systems' UK businesses, and the resulting Brexit near-term impacts across the business are likely to be limited.
It said it would support the UK Government in achieving its aim of ensuring that the UK maintains its key role in European security and defence post-Brexit, and to strengthen bilateral relationships with key partners in Europe.
