BAE Systems backs guidance as operational improvements aid interim growth
BAE Systems largely reiterated full year guidance on Wednesday, with interim earnings, profit and revenue growth achieved as improved operational performance helped to outweigh the effects of restructuring costs.
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The defence and aerospace company reported profit before tax of £776m for the six months ended 30 June, a 36% improvement on the same period last year, as revenue climbed 6% to £8.7bn as it was driven higher by growth from the electronic systems, US platforms & services and maritime divisions.
Meanwhile, first-half core earnings registered a 9% rise to £999m, leading BAE to stand firm on its guidance.
Full year underlying earnings per share are still expected to grow by mid-single digits compared to the full year underlying earnings per share in 2018 of 42.9p, as improved tax rates and operational performance are expected to continue to outweigh restructuring charges.
While it remains on course to meet earnings guidance, the FTSE 100-listed company said it now expects net debt at the year end to be broadly unchanged from the same point last year, a slight improvement from the previous guidance due to a net timing mix on its Qatar Typhoon programme and M109A7 programme.
Charles Woodburn, chief executive of BAE, said: "The first half performance underpins our guidance for the full year with improvements being made on a number of operational fronts. Our priority is to deliver consistent and strong operational performance for our customers and shareholders to enable us to meet our growth expectations over the medium term."