29th Jul 2021 10:38
(Alliance News) - BAE Systems PLC on Thursday said first-half profit soared, and it backed annual guidance, though it did caution on a potential foreign exchange hit.
BAE also announced plans for share buyback of up to GBP500 million.
The London and Farnborough-headquartered security and aerospace company said revenue in the six months to June 30 climbed 1.7% to GBP9.34 billion from GBP9.18 billion. Pretax profit jumped 67% to GBP1.15 billion from GBP689 million.
BAE noted the revenue figure was derived using IFRS reporting standards. A separate sales measure, which does not include any additions or deductions from equity accounted investments, was 1.7% higher at GBP10.04 billion from GBP9.87 billion.
BAE raised its interim payout by 5.3% to 9.9 pence per share from 9.4p a year earlier.
In addition, it plans to buyback up to GBP500 million in stock over the next year. BAE is aiming to reduce its issued share capital.
"We have delivered a strong first-half performance which underlines our confidence in the full-year guidance for top line growth, margin expansion and three-year cash targets," Chief Executive Charles Woodburn said.
For 2021, BAE expects a sales hike between 3% and 5%. It did note potential foreign exchange headwinds, however.
When it initially issued annual guidance, the pound fetched around USD1.35, though this rose to an average rate of USD1.39 during the first half.
BAE cautioned: "If these higher currency rates persist in line with the first half average rates, we expect reported sales to be at the lower end of this guidance range."
Shares were 2.9% higher at 576.60p each in London on Thursday morning.
By Eric Cunha; [email protected]
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