BAE Systems sales rise but guides on a flat 2018

BAE Systems sales rise but guides on a flat 2018

BAE Systems sales for 2017 rose 3.1% in 2017 helping underlying EPS increase to 43.5p from 40.3p.

The defence group highlighted an increase defence budgets in some of their key markets and favourable currency flucations as reason for the jump in sales.

BAE received £20.3 billion in orders through the period with key orders for the F-35 Lightning programme and contracts for self-propelled howitzers.

Qatar also signed a contract for 24 Typhoon aircraft in December which is reported to be worth £5 billion.

Despite a flurry of deals, BAE says it expects earnings to be flat over the following year, disappointing markets who sent the shares 2% lower in an initial reaction on Thursday.

CEO Charles Woodburn said of the results:”We delivered a good performance in 2017, consistent with our expectations for the year. We start 2018 with a streamlined organisation and a strong focus on programme execution, technology and enhanced competitiveness, providing a solid foundation for medium-term growth. With an improving outlook for defence budgets in a number of our markets, we are well placed to generate good returns for shareholders.”