Thursday, May 8, 2008
BAE Systems: INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 JANUARY 2008 TO 6 MAY 2008
INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 JANUARY 2008 TO 6 MAY 2008
07 May 2008 | Ref. 148/2008
BAE Systems plc today issues its first interim management statement in accordance with the requirements of the UK Listing Authority's Disclosure and Transparency Rules. The statement relates to the period from 1 January 2008 to 6 May 2008.
BAE Systems continued to progress well in the period, building on the strong performance of 2007 and with the Group's large order book providing excellent forward visibility. Trading for the period has been consistent with management expectations at the time of the preliminary results announcement on 21 February 2008. Additional order intake of approximately $0.8bn (£0.4bn) received in the period for mine protected vehicles, has further enhanced the near term outlook for the Land & Armaments business. As announced on 3 April 2008, a reduction in the UK military aircraft workforce is to be undertaken to reflect anticipated changes in the nature of the workload in that sector; the resultant costs will not impact our outlook for the year.
For the Group as a whole, a further year of good growth is anticipated for 2008.
The sale of the Surveillance and Attack business for $240m (£122m) was completed in the period, generating a profit on disposal of £61m.
In December 2007 and January 2008 the Group announced the proposed acquisitions of MTC Technologies Inc and Tenix Defence, respectively, for a combined consideration of £0.6bn.These acquisitions are progressing towards completion.
The Board's Nominations Committee is leading the search for suitable candidates to succeed Mike Turner as Chief Executive after he retires from the Company in August.
The independent committee (chaired by Lord Woolf) appointed by the Board to study and report on the status of ethical policies and processes in the Group reported at the end of the period.The committee's findings will now be
evaluated and acted upon.
The Company's Annual General Meeting will be held today at 11.00am at the Queen Elizabeth II Conference Centre, London. An announcement detailing the voting on the resolutions put to the meeting will be issued later today.