BAE Systems posts improving annual profits
BAE Systems, the British maker of military equipment, announced on 21 February 2019 that annual net profit jumped by a fifth, despite a slowdown in demand for Eurofighter Typhoon fighter jets.
Profit after tax rallied 21 percent to £1.0 billion ($1.3 billion) in 2018 compared with a year earlier. The group's earnings performance improved partly due to a lack of exceptional charges - but it cautioned over geopolitical turmoil. Turnover meanwhile was steady at £18.4 billion.
‘The group made good progress in strengthening the outlook and geographic base of the business, with a number of significant contract wins,’ said CEO Charles Woodburn. ‘Delivering a strong operational performance and continued investment will enable us to meet our growth expectations and underpin the long term.’
BAE's share price however fell 5.7% to 475.60 pence in early deals on London's benchmark FTSE 100 index, which was 0.7 lower overall.
‘On the surface, BAE Systems was feeling positive,’ said Spreadex analyst Connor Campbell. ‘However, it undermined all that by reminding investors it is 'subject to geopolitical uncertainties', the kind that could scupper its forecasts.’
More from Defence Notes
-
![Details revealed on Germany’s big spending plans]()
Details revealed on Germany’s big spending plans
In May this year, German Chancellor Friedrich Merz said the government plans to position Germany as “Europe's strongest conventional army”. A new blueprint outlines how this is going to occur through massive investment.
-
![European Council to deliver at “pace and scale” on European defence readiness 2030 roadmap]()
European Council to deliver at “pace and scale” on European defence readiness 2030 roadmap
Two of the concrete projects outlined in the readiness report, the European Air Shield and Space Shield, will aim to be launched by Q2 2026.
-
![Malaysia’s defence budget sets out major procurement goals for 2026]()
Malaysia’s defence budget sets out major procurement goals for 2026
The country has allocated RM21.70 billion for defence spending next year, with some major procurements set to be initiated across the country’s army, navy and air force.
-
![GAO highlights the need for more commercial data and availability improvements]()
GAO highlights the need for more commercial data and availability improvements
The US Government Accountability Office recently released two reports; one into the availability of selected equipment and another looking at how the government gets data and intellectual property rights through contracting.
-
![How Canada plans to “seize” the opportunity to increase investments in defence]()
How Canada plans to “seize” the opportunity to increase investments in defence
The Canadian Department of National Defence has been increasing efforts to accelerate the acquisition of new equipment and modernise its in-service inventory.
