07 Sep 2005
"We have had an excellent first half and once again delivered a strong set of financial results. We are successfully executing our transatlantic strategy and are now seeing profitable growth in the US and Europe.
"We are successfully expanding our business in the high value, high growth sectors of the defence market and improved operational performance is being delivered across the Company, including the UK programmes business.
"We are a well balanced company not overly dependent on any one sector of the aerospace and defence markets and in short, we are set to deliver good growth going forward."
Mike Turner, CEO BAE Systems
1. Delivering strong financial performance
- Earnings rising
- Strong cash flow funding business development and healthy dividends
- Order book reinforces outlook
- Better UK MoD terms lead margin recovery
2. UK / Europe business
- Typhoon agreement
- Nimrod all milestones achieved
- Newly formed Integrated System Technologies down-selected for two important NEC programmes Falcon and Shaman
- Deriving value from growth in UK/European programme activity
- Restructuring European portfolio and investing in Europe Alvis, Hgglunds, Bofors.
3. Enlarged presence in the US
- Number 2 globally in Land Systems
- Access to high priority US budget allocation
- Strong UDI order book since March 2005 $2.6 billion including $1.1 billion to upgrade the US Army Bradley Armoured Fighting Vehicles
4. Growing support business
- Now accessing long-term support contracts with the UK MoD
- Innovative partnership between industry and armed forces
- Unique global defence support position
5. Airbus performing strongly
- Good returns on investments
- Successful A380 launch
6. Two further non-executive appointments
- Three new non-executive directors have been appointed during the period
- Increased US representation on the Board in accordance with the Companys stated strategy
Photographs of the BAE SYSTEMS Chairman, Dick Olver and the CEO, Mike Turner will be available from Newscast on 0207 608 1000
