BAE Systems

Defence budget cuts hit BAE Systems’ profits

Defence giant BAE Systems has issued a warning that its profits would continue to remain under pressure due to cuts in defence budgets in the US and the UK.

For the last year, BAE announced pre-tax profits of £1.4 billion, down from £1.5 billion from the previous year. Revenues slipped 7 per cent, from £19.2 billion to £17.8 billion.

Underlying earnings before interest, taxation & amortization (EBITA) slipped from £2.02 billion in 2011 to £1.9 billion in 2012.

General: 
Companies: 

Defence cuts Cited to Hamper BAE Growth

U.K. defense giant BAE Systems PLC on Thursday rose up to caution against the 2010 growth rate. It expects the witness a lower than estimated growth rate for BAE, citing strategic changes introduced in the defense-spending review conducted by the British government.

The company explained that the SDSR will pose a considerable impact on its UK arm, resulting in a squeeze in the earnings of over 1p a share. However, it insisted that it can assist the government to meet its efficiency targets.

General: 
Business: 
Companies: 

BAE Shares Fall as Government Announces a Review of Defense Spending Policy

Following the government‘s review on the defense spending of the country, shares for BAE Systems dropped by a damaging 3%. The stock for BAE witnessed a fall of 12.3p to a share value of 351.6p; the shares fell for a second consecutive day, as the shares for BAE had seen a drop of 2% on Tuesday night.

The market in London as a whole, seemed nervous about the future of the index as the government was about to announce the allocation of funds in the coming five years. Despite the panicky atmosphere, the FTSE Index managed to hold with grit and witnessed a drop of just 7 points.

General: 
Companies: 

BAE to Buy Three Units of L-1 Identity Solutions for $296m

As per a complex deal, BAE Systems will buy a segment of L-1 Identity Solutions that will eventually lead to the sale of the US defence group to French rival Safran for $1.6bn.

The three units of L-1: Spectal, Advanced Concepts and McClendon have been priced at $296m.

Spectal is a private intelligence consulting business with some of the staff members from CIA and FBI. Advanced Concepts offers IT services to the military and to Government intelligence organizations and geographical imaging services is provided by McClendon.

Companies: 
General: 
People: 

BAE Systems to sale its US aerospace arm

The British defence company BAE System has declared about its plans of selling the parts of its US aerospace business. The BAE Systems has instructed the Wells Fargo and JP Morgan to guide the company over its Platform Solutions business.

According to reports the sale will generate 1.3 billion pounds for the defence firm. Experts say this move of selling assets is a result of the cuts in defence spending in both the UK and US.

Business: 
General: 

Pages

Subscribe to RSS - BAE Systems