BAE Systems trading in line with expectations after strong order intake
Defence giant BAE Systems has reported that first-quarter trading was in line with expectations, with strong order intake and good operational performance being maintained throughout the period.
The company said full-year 2022 guidance across all metrics was unchanged despite ongoing pressures on its supply chains, delivery lead times and people resourcing. Sales were projected to rise two to four per cent year-on-year, while underlying earnings were growing four to six per cent against 2021.
It highlighted that its geographic diversity had positioned it "strongly", as many of the countries in which it operates have announced increased spending to counter "the elevated and evolving threat environment" on multiple fronts.
Orders had been positive, particularly on long-term programmes, such as the F-35 Lightning combat aircraft, and it continued to expect a strong year of order intake.
It also said the spending outlook was positive in the United States, and there were further opportunities in Britain, Asia-Pacific and the Middle East.
BAE has a joint venture at Hadley Castle Works in Telford, known as Rheinmetall BAE Systems Land (RBSL), which specialises in land combat vehicles.
Chief executive Charles Woodburn said: "Trading in the first quarter has been in line with expectations with strong order intake and good operational performance being maintained.
"Looking forward, our diverse portfolio, together with our focus on programme execution, cash generation and efficiencies, are helping us to navigate the challenging operating environment in the near term, while positioning us well for sustained top line and margin growth in the coming years, alongside accelerating our ESG (Environmental, Social and Governance) agenda.
"Additionally, we see opportunities to further enhance the medium-term outlook as our customers address the elevated threat environment."
