DEFENCE giant BAE Systems is expecting to deliver a growth in earnings this year despite losing out on a substantial armoured vehicles UK government contract.
The group said trading for the first quarter of the year had been consistent with management expectations and it expected growth in three of its four operating groups.
BAE said its electronic intelligence supply, programme supply unit and international businesses should grow this year, while it is expecting land and armament will lag behind.
Chief executive Ian King said: “We have a proven strategy focused on long term sustainable growth, and with the continued good order intake year-to-date, adding to our already strong order book, we are well placed for the future.”
BAE remains positive despite losing out to US rival General Dynamics on a bid for the first phase of a £4bn contract to build armoured reconnaissance vehicles.
The group said the decision was disappointing but does not impact the outlook for the business.
A raft of contract wins for BAE during the first quarter gave a boost to the group’s results.
BAE won a £360m orders contract for the Astute class submarine programme and a four-year contract to develop new combat ships for the Royal Navy worth £127m.
Other wins include, a £135m contract for the production of self-propelled artillery gun systems for the Swedish and Norwegian armed forces, and further orders for $193m (£128m) for the supply of mine resistant ambush protected vehicles.
BAE’S FIRST QUARTER CONTRACT WINS
£135m for production of Archer 155mm artillery guns
£360m Astute class submarine
£127m combat ships for the Royal Navy
£128m Mine resistant ambush protected vehicles