For a company that posted a first-half loss, BAE Systems management remains sanguine about the outlook for the year, even in the turbulent economic environment.
The first six months to June 30 saw the company record a loss of £70 million pounds, ($115.6 million) rather than the £599 million profit for the same period in 2008. Sales for the period grew by 28%, to total 9,941 million.
“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,” said Ian King, the company CEO.
“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,” he added.
Charges related to acquisitions, asset and finance costs, contributed to the first half loss.
On the air side the company is looking to the “expected …high volume production” of the F-35 Joint Strike Fighter, and “increasing near-term volumes on the Typhoon” to help drive growth. The initial third tranche deal on Typhoon – signature of which is imminent – will provide an “order intake of approximately £2 billion”.
Picture Credit BAE Systems