“This is another good set of results demonstrating that BAE Systems continues to perform well. We see good opportunities for sustainable growth within the Group including building on our seven home markets and our substantial presence in customer support and services. We have a proven track record of delivering reduced costs and enhanced capability for our customers and expect to continue to drive performance from our large order book.”
Ian King, Chief Executive BAE Systems
• Good results demonstrate successful delivery of Group strategy
o Headline sales up 9% to £10.6bn
o Underlying EBITA up 14% to £1,114m
o Underlying earnings per share up 14% to 20.4p
o Dividend up 9% to 7.0p
o Results underpin the outlook for continued growth in 2010
• Strength and depth in International markets
o Well placed with broad market base in seven home markets.
o Positioned to continue success in the US market.
o Sustainable UK business, which only represents some 20% of sales in the first half.
o Good opportunities to continue to develop our home markets in the Kingdom of Saudi Arabia, Australia and India.
o New land systems-focused joint venture formed in India with Mahindra & Mahindra.
o New order worth over £500 million, with Hindustan Aeronautics Limited, to supply products and services to enable a further 57 Hawk aircraft to be built under licence in India.
• Well positioned to deliver long-term sustainable growth
o Strong position in customer support and services, representing 49% of sales in the first half 2010, delivering reduced costs and enhanced capability for customers.
o Significant business in cyber and security services, expected to continue to be priority activities for governments.
o Platforms and products activities are characterised by high technology and long term committed programmes providing good forward visibility.
o Growth expected from our high technology electronics business.
o Outlook for tactical combat aircraft remains strong across the Typhoon and F-35 programmes.
o Good prospective activity in selective export markets.
About BAE Systems
BAE Systems is a global defence, security and aerospace company with approximately 107,000 employees worldwide. The Company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. In 2009 BAE Systems reported sales of £22.4 billion (US$ 36.2 billion)
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