20th Feb 2020 09:12
(Alliance News) - BAE Systems PLC on Thursday reported a rise in sales and revenue and said 2019 has been "a year of significant progress for the company."
The Farnborough-based aerospace and defence company said in 2019 its revenue was GBP18.3 billion, up 8.9% from GBP16.8 million in 2018. Bloomberg consensus, provided by BAE, expected GBP19.8 billion in revenue.
The company said good results were underpinned by improving operational performance as governments in key markets continue to prioritise defence and security.
Pretax profit was 33% higher at GBP1.6 billion compared to GBP1.2 billion in 2018, while underlying earnings before interest, tax, depreciation and amortization was GBP2.2 billion compared to GBP1.9 billion a year ago.
On a divisional basis, Electronic Systems revenues rose to GBP4.4 billion from GBP3.9 billion in 2018, meanwhile Cyber & Intelligence rose to GBP1.7 billion from GBP1.6 billion and Platforms & Services (US) increased to GBP3.3 billion from 3.0 billion a year ago.
As a result, the company proposed final dividend of 13.8 pence. making a total of 23.2p per share for the year, an increase from 22.2 pence in 2018.
BAE said and the geographic mix of the business continued to evolve as the US and International business continued to grow and UK and Saudi Arabia revenues remained stable.
Also on Thursday, after consultation with the The Pensions Regulator in the UK, BAE said it has reached agreement with the trustee board of the combined pension scheme on the accelerated funding valuation and a revised deficit recovery plan.
At the funding valuation date of October 31, the deficit was GBP1.9 billion, the company said.
BAE said the current deficit recovery plan,which runs to 2026, will be replaced by a new deficit recovery plan.
Under the new plan, a one-off payment of GBP1.0 billion to be made in the coming months, with approximately GBP240 million of funding payable in the scheme year ending March 31 and approximately GBP250 million by March 31, 2021.
Charles Woodburn, chief executive officer, said: "We delivered a good set of financial results in line with guidance, growing sales and earnings, with improved operational performance and increased investment in the business to underpin our growth outlook.
Strategically we took a number of actions to strengthen the portfolio and the pensions agreement announced today is good for all stakeholders. These will help to accelerate our strategy and further our growth outlook."
Looking further ahead, the company said it expects 2020 underlying earnings per share to "grow by mid-single digit percentage."
BAE Systems shares were trading 3.3% higher in London at 660.80 pence each on Thursday.
By Loreta Juodagalvyte; [email protected]
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