19th Feb 2015 07:38
LONDON (Alliance News) - Aerospace and defence group BAE Systems PLC Thursday reported a higher profit for 2014, while revenue dipped during the year.
The FTSE 100-listed company reported an operating profit of GBP1.30 billion, up from GBP806 million in 2013. Revenue decreased to GBP16.64 billion from GBP18.18 billion the year before, hit by adverse exchange rate movements, lower volumes in Land & Armaments, and the previous year's benefit from the one-off price settlement for Salam Typhoon.
Earnings before amortisation and impairment of intangible assets, finance costs, and one-off items was GBP1.70 billion, compared with GBP1.93 billion last year. However the group said its year-on-year position was broadly unchanged after allowing for exchange-rate translation and the one-off 2013 price settlement.
BAE Systems said the market is "competitive", but expects underlying earnings per share in 2015 to be "marginally higher" than in 2014, including some reliance on anticipated naval and aircraft orders.
The group reported underlying earnings per share of 38.0 pence for 2014, compared from 42.0 pence in 2013.
"Looking ahead, defence spending remains a high priority in a number of international markets. In the UK, we benefit from long-term contracts, notwithstanding continued pressure on public spending. We believe US budgets are now relatively stable, with some early indications of a modest improvement in 2016," said Chief Executive Ian King in a statement.
BAE Systems said it continued to win new business throughout 2014, with over GBP10 billion of new orders from the UK and US, while its order backlog at the end of the year was GBP40.5 billion, compared to GBP42.7 billion in 2013.
BAE Systems returned a total of GBP925 million to shareholders in 2014 from its share repurchase programme and dividends. The group declared a total dividend per share of 20.5 pence for 2014, from 20.1 pence last year.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
BAE Systems