BAE Systems' profit down
February 20, 2014
BAE Systems announced Thursday its earnings after tax dropped by 82 percent in 2013 in a year-on-year comparison.
Owing to a huge one-off charge linked to a reduction in US government spending, the defense company saw its net profit tumble to 168 million pounds ($280 million, 203 million euros). The firm's underlying profit increasing by 3 percent.
The group announced a 2-percent rise in sales for last year to 18.2 billion pounds, also pointing to an order backlog of 42.7 billion pounds.
Positive outlook
BAE System's performance was boosted by the so-called Salam deal with Saudi Arabia on improved pricing of Eurofighter Typhoon jets.
"Following last year's non-recurring benefit from the Salam price escalation settlement, together with continuing US budget pressures, the group's reported earnings per share is expected to reduce by approximately 5 to 10 percent compared to 2013, BAE said in a statement.
CEO Ian King added that the strong order backlog and a robust balance sheet provided "a solid basis for growth over the medium term."
hg (AFP, Reuters)