TOP NEWS: BAE Systems Reports High Demand; Non-Exec Advaithi Leaves

(Alliance News) - BAE Systems PLC on Thursday said it expects its performance in the second half ...

Alliance News 25 June, 2020 | 8:50AM
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(Alliance News) - BAE Systems PLC on Thursday said it expects its performance in the second half to be much stronger than in the first half as it returns towards "full operational tempo".

In addition, the Farnborough, England-based aerospace company said Non-Executive Director Revathi Advaithi will step down to focus on the business and domestic challenges associated with her recent move as chief executive of Flex, based on the West Coast of America.

"Revathi has been a valued contributor who will be sadly missed both personally and professionally, but her reasons for leaving are well understood and respected by the board," said Chair Roger Carr.

Turning back to trading, the FTSE 100-listed firm said it has continued to focus on its near-term priorities, including supporting its supply chain in dealing with pandemic-related disruption and ensuring the maintenance of appropriate liquidity.

In parallel, BAE Systems said it has taken actions to enhance its resilience and position the business towards a return to "full operational tempo". The company noted that it is investing in new facilities to meet the growth profile in a number of sectors.

BAE Systems said its productivity levels in June have improved within its defence unit after the pandemic hurt the business in the second quarter. The company noted that it continues to drive cost control measures.

Within the UK-based Air and Maritime sectors, second quarter disruptions have particularly impacted cost recoveries and sales volumes, offset to some degree by strong underlying operational performance and cost control measures.

BAE Systems said its US-based Controls & Avionics business has been and is expected to be hurt for the near-term, especially in the commercial aftermarket and product delivery lines.

Going forward, the company said demand for its capabilities remains high with order intake in line with its original expectations for the year.

Sales for the half year are expected to be broadly stable year-on-year whilst profit is expected be 15% lower than last year primarily due to cost under recoveries, significantly reduced volumes in higher margin commercial work and the sales mix.

The liquidity of the group remains strong, BAE Systems highlighted.

The stock was trading 0.7% lower in London on Thursday at 476.20 pence a share.

By Evelina Grecenko;

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
BAE Systems PLC 477.40 GBX 1.55

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