BAE trading consistent but delay on Salam jet deal could lower share earnings


BAE Systems has announced trading consistent with expectations with outlook remaining unchanged, in the period from 1 July to 9 October. (Release)

Double-digit growth in underlying earnings per share is expected for 2013. The group anticipates a satisfactory completion to its Salam pricing negotiations this year but says that, should negotiations be extended beyond 2013, earnings per share will be impacted by about six to seven pence.

In the UK, BAE continue to discuss balancing naval shipbuilding capacity with future warship demand.

The group highlights the impact a protracted US government shutdown could have on financial performance. It says, "since 1 October, around 1,200 employees across the Intelligence & Security and Support Solutions businesses have been temporarily directed not to report to work."

In August, BAE was awarded an eight year, $534m (£331m) contract to maintain the readiness of Minuteman III intercontinental ballistic missiles.