BAE Systems annual earnings fall but dividend rises

Arms company increased sales and operating profits
BAE Systems annual earnings fall but dividend rises
BAE Systems's order backlog dropped to £36.8bn from £40.5bn a year ago.

Defence company BAE Systems (LON:BA.) posted lower underlying earnings but increased its dividend and forecast higher earnings per share in 2016.

BAE, which is involved in making Eurofighter Typhoon jets and aircraft carriers for the Royal Navy, said underlying pre-tax earnings before interest and amortisation (EBITA) fell to £1.68bn from £1.7bn a year ago.

It blamed the fall in EBITA on a previously announced Typhoon production slowdown and Australian shipyard impairment and rationalisation charges.

The company's order backlog also dropped to £36.8bn from £40.5bn a year ago.

But sales rose to £17.9bn from £16.6bn and operating profit increased to £1.5bn from £1.3bn last time. Pre-tax profit advanced to £1.09bn from £882mln beforehand.

Underlying earnings per share lifted to 40.2p from 38p previously and the company increased its total dividend per share by 2% to 20.9p.

The group forecast underlying earnings per share in 2016 would increase by between 5% and 10% against the adjusted underlying earnings per share of 36.6p in 2015.

Shares in the company rose 10.2p, or 2%, to 509.5p in the first hour of trading in London.

Chief executive Ian King said pointed out that its cyber security and commercial electronics businesses, which it is hoping will provide a major source of future growth, were continuing to expand.

King added: "The group is well placed to continue to generate attractive returns for shareholders as defence budgets recover."

View full BA profile View Profile

BAE Systems Timeline

Newswire
February 19 2014

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © personabelovo.ru, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated.