DEFENCE giant BAE Systems yesterday said its outlook for the year remains unchanged from February, when it forecast an earnings drop of up to 10 per cent due to US spending cuts.
“In the US, the announced defence budget, while not yet finally agreed in detail, indicates spending reductions much as we had anticipated and points to a more predictable outlook than we have seen in recent years,” said chief executive Ian King. “In the UK, our business continues to benefit from long-term, stable contracts in the maritime and military air sectors.”
The FTSE 100-listed firm, which said trading has been in line with expectations this year so far, recorded a year-end order backlog of £42.7bn, benefiting from the £9.3bn of international business it won last year.
BAE agreed pricing with Saudi Arabia on a long-awaited jets deal in February, after having to lower its full-year earnings guidance for the past two years after failing to agree a deal.
Shares closed up 1.8 per cent.