29th Sep 2014 07:00
LONDON (Alliance News) - BAE Systems PLC Monday said it expects a short-term trading disruption in the US, will take a goodwill impairment charge on the sale of a majority stake in its South African business, and will book extra charges related to commercial shipbuilding programmes in the US.
The FTSE 100 aerospace and defence group said it expects a limited trading disruption in the US in the final quarter of 2014, as the US government operates under a Continuing Resolution from October 1 which will keep federal government spending at fiscal 2014 levels.
Elsewhere, it expects to report a goodwill impairment of approximately GBP70 million against the carrying value of its BAE Systems Land Systems South Africa Proprietary Ltd business, in which it sold a 75% stake to Denel (SOC) Ltd in August for ZAR641 million.
In addition, BAE said recent reviews have indicated it has a further GBP30 million of exposure related to commercial shipbuilding programmes in its US Support Solutions arm. This is in addition to the GBP12 million in charges reported by the group in its full year results.
BAE said, however, that in spite of the extra charge, it retains its guidance for its 2014 full year earnings.
Elsewhere, BAE said its group order intake in the calendar year to August 23 was GBP7.9 billion, with GBP2.6 billion of this from non-UK or US markets.
It said its bolt-on acquisition of Signal Innovations, an imaging technologies and analytics provider to the US and intelligence and defence communities, is expected to complete imminently.
By Sam Unsted; [email protected]; @SamUAtAlliance
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