BAE announces 2019 half-year results
Posted on 22 Aug 2019 and read 1401 times
Announcing BAE Systems’ half-year results, chief executive Charles Woodburn said: “The first-half performance underpins our guidance for the full year, with improvements being made on a number of operational fronts.
“Our priority is to deliver consistent and strong operational performance for our customers and shareholders to enable us to meet our growth expectations over the medium term.”
He went on to say that the order backlog of £47.4 billion has been reduced marginally over the first half of the year, with trading on multi-year long-term contracts in ‘Air’ partly offset by further growth in the US businesses.
Meanwhile, sales increased by 4% (on a constant currency basis) to £9.4 billion, the ‘underlying’ EBITA was £999 million, the operating business cash outflow was £309 million, and the net debt was £1.9 billion (compared with £904 million at 31 December 2018).
Some of the key points relating to Air include: the Qatar Typhoon and Hawk programme being mobilised, and the contract amended to accelerate aircraft deliveries; delivery of the 500th F-35 aft fuselage and the business ramping up to full-rate production in 2020; and the next phase of the Tempest next-generation combat air programme being ‘contracted’.
There were also significant developments relating to ‘Maritime and Land UK’, ‘Electronic Systems’, ‘Cyber Intelligence’ and business in the USA.
Mr Woodburn added: “The group now expects net debt in 2019 to be broadly unchanged from the net debt at 31 December 2018.
“This is a slight improvement from the previous guidance, reflecting a net timing mix on the Qatar Typhoon programme and the M109A7 (self-propelled howitzer) programme.
“The group continues to target in excess of £3 billion of free cash-flow over the three-year period 2019-2021, assuming a $1.30 to sterling exchange rate.”