BAE expects earnings to roar ahead on back of high Typhoon jet exportsComments Off on BAE expects earnings to roar ahead on back of high Typhoon jet exports
DEFENCE giant BAE Systems expects supersonic earnings growth this year because of strong demand for Typhoon jets.
Talks to sell more fighter planes to foreign powers, a plan supported by the Government, are fuelling BAE’s belief it can clinch more contracts this year.
The firm said underlying earnings per share will be between 5% and 10% higher this year, bucking the trend for under-performing defence manufacturers such as Cobham and Rolls-Royce.
Negotiations between Theresa May’s Government, BAE and Saudi Arabia — which accounts for a fifth of BAE’s sales — to renew a five year defence deal are also progressing.
The Typhoon is BAE’s flagship fighter jet and offers potentially lucrative after-care revenues. In July, BAE won a £2.1 billion deal with the RAF to services its Typhoon fleet.
BAE is also leading the UK’s £41 billion Successor Submarine programme, which yesterday came under fire for using French steel.