Today, we have announced the Group’s financial results for 2015
“We have delivered another year of solid performance. BAE Systems has a large order backlog generated by a well-balanced portfolio of businesses serving the needs of customers in many of the world’s larger accessible markets. The Group is well placed to continue to generate attractive returns for shareholders as defence budgets recover and our commercial adjacencies of cyber and commercial electronics continue to grow,” said
Ian King, Chief Executive.
-- Sales increased by £1.3bn to £17.9bn, including a £0.8bn benefit to UK sales from increased aircraft deliveries to Saudi Arabia and sales from the trading of equipment on the European Typhoon programme and the increased activity across the naval business. Exchange translation added £0.2bn compared to prior year.
-- Underlying EBITA reduced by £19m, to £1,683m, impacted by both the previously announced Typhoon production slowdown and Australian shipyard impairment and rationalisation charges. There was an exchange translation benefit of £15m.
-- Underlying earnings per share was 2.2p higher than in 2014, at 40.2p, including a 2.6p benefit from the previously announced overseas tax provision release and an additional 1.7p benefit from a UK tax provision release.
-- The large order backlog of £36.8bn underpins confidence in the future prospects for the business.
-- Final dividend of 12.5p per share making a total of 20.9p per share for the year (an increase of 2% over 2014).
-- Selected by Boeing to develop and manufacture the next-generation digital electronic warfare system for the US Air Force’s Eagle Passive Active Warning Survivability System programme. The upgrade of up to 400 F-15 aircraft could be worth in excess of $1.0bn (£0.7bn) over the life of the programme.
-- Major contracts received from the Royal Navy, including an £859m Type 26 frigate demonstration contract and the full £1.3bn contract for the fifth Astute Class submarine.
-- Further contracts received in support of the US combat vehicle industrial base, including $104m (£71m) for the engineering and manufacturing development phase as part of the competition for the Amphibious Combat Vehicle 1.1 programme.
-- A $100m (£68m) capital investment programme underway at our San Diego, California, shipyard.
-- Awarded a five-year contract by the US Army for the Enhanced Night Vision Goggle III and Family of Weapon Sights – Individual programme, with a potential value of $435m (£295m).
-- Progressive expansion of the Typhoon aircraft’s capabilities, including the integration of the Captor E-Scan radar and additional weapons.
-- In Saudi Arabia, a contract was awarded for a further 22 Hawk aircraft, associated ground equipment and training aids. (Emphasis added—Ed.)
-- Sales growth of 31% in Applied Intelligence and increased investment to support the expansion of the commercial cyber security business.
-- Agreement to acquire a 20% interest in Reaction Engines Limited, a company working on a radical new aerospace engine concept, SABRE™, which combines rocket and jet engine functions, made possible by exciting new heat exchanger technology.
Click here for the full financial statement (42 PDF pages) on the BAE website.
(EDITOR’S NOTE: BAE’s three “Platforms & Services” units in the UK, US and Australia accounted for most of the £3.7 billion net drop in the order backlog.)