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BAE Systems plc – 2017 Annual General Meeting

BAE Systems PLC
Today, BAE Systems plc will hold its Annual General Meeting.
BAE Systems plc will hold its Annual General Meeting today at 11 a.m. in Farnborough, Hampshire, UK.  At the meeting, Chairman, Sir Roger Carr, and Chief Executive, Ian King, will comment on the performance of the Group in 2016, as detailed in the results announcement published on February 23, 2017, and outline the continued progress in the Group in the year to date.
Ian King, Chief Executive, will say: “We have started the year with good momentum building on a strong operational performance in 2016 and the business is performing well.  Our strategy is well defined, we have a large order backlog, long-term program positions and a well balanced portfolio.  With an improving outlook for defense budgets in a number of our markets, in 2017 and beyond we are well placed to continue to generate attractive returns for shareholders.”
Trading for the period has been consistent with management expectations at the time of the 2016 results announcement and the Group's outlook remains unchanged with 2017 underlying earnings per share expected to be approximately 5% to 10% higher than the 40.3p in 2016*.
* Assuming an average US$1.25 to sterling translation rate in 2017.
The results of voting at the Annual General Meeting will be announced later today.

Key points in 2017 to date

  • In January, the Group secured a $542m (£419m) contract to provide 145 M777 ultra-lightweight howitzers to India.
  • In January, a heads of agreement was signed with Turkish Aerospace Industries to collaborate on the design and development phase of an indigenous next-generation fighter for the Turkish Air Force.
  • In February, the acquisition of IAP Research, Inc. was completed. This technology insertion enhances our position in advanced weapon systems, such as the electromagnetic railgun.
  • Following operational certification on  February 23, the new San Diego dry dock accepted its first docking. The US ship repair business received orders of $352m (£284m) in the first quarter.
  • In March, the Group received from the Royal Navy the full $1.8 bn (£1.4bn) contract for the sixth Astute Class submarine. 
  • On 3 April, the Group was awarded a $112m (£87m) contract by the US Army to perform technical support and sustainment of M88 recovery vehicles.
  • The MBDA joint venture, in which BAE Systems has a 37.5% interest, has continued to win new orders, BAE Systems’ share of which is valued at approximately $186 m (£143m) in the first quarter of 2017.
  • In the US, the bipartisan FY17 omnibus budget is welcomed and underpins the medium term planning assumptions for our US businesses. In the UK, defense requirements have remained consistent with the 2015 Strategic Defense and Security Review commitments.
  • The result of the UK general election on June 8 and negotiations to determine the terms of the UK’s exit from the EU thereafter are expected to provide greater clarity in the medium term as to the economic outlook.
  • Judicial Review proceedings into the process followed by the UK government in granting defense export licenses to the Kingdom of Saudi Arabia are under way with a judgment expected in the near future.

Half-year results

BAE Systems will announce its financial results for the half year ending June 30, 2017 on August 2, 2017.

The Board and directors

On  February 22, 2017, the Group announced the appointment of Charles Woodburn to succeed Ian King as Chief Executive with effect from July 1, 2017. Ian King retires from the Company at the end of June having served over 40 years, including leading BAE Systems as Chief Executive since 2008. Charles Woodburn is currently Chief Operating Officer and has been a director of the Company since May 2016.

Cautionary statement

All statements other than statements of historical fact included in this statement are forward-looking statements. Such forward-looking statements, which reflect management's assumptions made on the basis of information available to it at this time, involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of BAE Systems or the markets and economies in which BAE Systems operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. BAE Systems plc and its directors accept no liability to third parties in respect of this statement, save as would arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.