13 Sep 2001
BAE Systems today announced half-year results with profit before interest, excluding exceptional items and goodwill amortisation, up 8.7% to 551 million (2000 507 million) as the company continued to perform in line with plan.
- Profit before interest increased* 8.7% to 551m
- Profit before tax increased* 3.9% to 482m
- Diluted earnings per share* 10.2p
- Dividend per share 3.5p
- Net debt 1,035m
- Half year order book 45.4bn
* excluding goodwill amortisation and exceptional items
Sales rose to 6,292 million (2000 5,663 million), and the company maintained a strong order book, which at the end of June 2001 had grown larger, to 45.4 billion. The 6% increase in the interim dividend to 3.5 pence per share is a reflection of our confidence in the group's outlook.
BAE Systems said that stronger trading is expected in the second half. Seasonality continues to be a feature of a number of the company's business groups. In particular in the second half, Programmes will benefit from cost reduction actions and the achievement of a significantly higher number of milestones on Eurofighter Typhoon. The order book reflects strong order books from Airbus and Customer Solutions & Support, the latter driven by more spares and repairs activity. Integration of the former BAe and MES businesses has been highly successful and is essentially complete. Anticipated synergy savings are being achieved in line with plan.
In the naval business, the medium and long-term outlook for BAE Systems Marine shipyard business is more stable since the UK Government announced its Type 45 procurement strategy in July. Additionally, all major procurement items have been awarded under the prime contract for Astute, the next generation nuclear powered attack submarine, the first of which is now under construction.
The North American business group, which operates in the company's largest global market, has achieved strong order intake. This business now delivers 20% of the company's sales, strong and consistent cashflow and profits. This includes the recent acquisitions from Lockheed Martin.
Good progress has been made in restructuring to align business capacity with anticipated throughput, and this work continues. Prospects for the sale of further Hawk aircraft remain good with campaigns leading to potential sales of 100 - 200 aircraft over the next 10 years.
Chairman, Sir Richard Evans, said: "These results for the first half are in line with the plan we have been following. The trading bias this year, like last, is to the second half. Business performance for the full year remains on track. We expect growth in the company's performance to resume in 2002 as planned."
A full copy of the interim statement is available at www.baesystems.com.
