LONDON: Though earnings fell on weak Western defence spending, the United Kingdom’s aerospace group BAE Systems has posted £740 million ($1.14 billion) earnings after taxation for 2014 as compared to £168 million in 2013.
But underlying earnings before interest, tax and one-off items dropped 11.5 percent to £1.7 billion. That compared with expectations of £1.73 billion, according to analysts polled by Bloomberg. Sales meanwhile sank 8.5 percent to £16.64 billion. The group’s 2014 performance was also hit by adverse exchange rate moves and last year’s one-off boost from the so-called Salam deal with Saudi Arabia on improved pricing of Eurofighter jets.
BAE added that underlying profits were “broadly unchanged” after allowing for the exchange rate translation and the exceptional 2013 price settlement for Salam. On a brighter note, the group expressed optimism over the outlook. BAE forecast earnings per share – a key measure of performance – would be “marginally higher” in 2015 owing to anticipated new aircraft and naval orders.
