7th Nov 2019 09:01
(Alliance News) - BAE Systems PLC on Thursday reiterated its 2019 guidance and said that it is making good progress with major contracts such as the F-35 jet fuselage supply agreement, Qatar Typhoon and Hawk contract, and Type 26 frigate manufacturing programme.
Shares in BAE Systems were up 0.9% at 588.47 pence each in London.
The London-based aerospace and defence company predicts 2019 underlying earnings per share, excluding one-off tax benefit, to grow by a mid-single digit percentage compared to 42.9p per share recorded in 2018.
BAE Systems also continues to target over GBP3 billion of free cash flow in the three-year period from 2019 to 2021, and expects 2019 net debt to be broadly unchanged from 2018 figure.
"Whilst the group is subject to geopolitical uncertainties including the forthcoming general election in the UK, the above guidance is provided on current expected operational performance and remains based on an assumption of average sterling exchange rate of USD1.30," BAE Systems said.
On major contracts, the company said the production ramp-up of the F-35 programme is progressing well towards 140 fuselage sets in 2019 and full-rate production levels targeted in 2020.
BAE Systems also said that manufacturing work on the Type 26 frigate programme in the UK continues to increase following cut steel on the second ship in August and that the Qatar Typhoon and Hawk contract is meeting its contractual obligations with Typhoon now aligned to an accelerated schedule.
In the US, BAE Systems continues to make progress with production ramp-up of combat vehicles, with first four amphibious combat vehicles having been delivered to meet testing requirements.
The company also secured further contract awards in September including the M88A3 recovery vehicles modernisation pact and the Bradley A4 infantry fighting vehicle supply contract, strengthening the order backlog for the combat vehicles business.
BAE Systems separately said that Harriet Green has now retired from the board, as previously reported, having completed nine years' service as a non-executive director.
The FTSE 100 company is slated to release its 2019 results on February 20.
By Tapan Panchal; [email protected]
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