BAE Systems, the British maker of military equipment, announced on 21 February 2019 that annual net profit jumped by a fifth, despite a slowdown in demand for Eurofighter Typhoon fighter jets.
Profit after tax rallied 21 percent to £1.0 billion ($1.3 billion) in 2018 compared with a year earlier. The group's earnings performance improved partly due to a lack of exceptional charges - but it cautioned over geopolitical turmoil. Turnover meanwhile was steady at £18.4 billion.
‘The group made good progress in strengthening the outlook and geographic base of the business, with a number of significant contract wins,’ said CEO Charles Woodburn. ‘Delivering a strong operational performance and continued investment will enable us to meet our growth expectations and underpin the long term.’
BAE's share price however fell 5.7% to 475.60 pence in early deals on London's benchmark FTSE 100 index, which was 0.7 lower overall.
‘On the surface, BAE Systems was feeling positive,’ said Spreadex analyst Connor Campbell. ‘However, it undermined all that by reminding investors it is 'subject to geopolitical uncertainties', the kind that could scupper its forecasts.’
The initial document focused more on creating the right partnerships and inspiring investment in defence than on any details of how future UK Armed Forces would be armed.
The first stage of developing a new UK Defence Industrial Strategy has highlighted failings in current structures with solutions expected to be proposed in next year’s full strategy.
Romania joined NATO more than two decades ago and the country is vital to the alliance’s geographic reach and its ability to supply Ukraine with weapons.
Although Trump’s geopolitics policy for Europe remains unclear, defence analysts from the US and Europe predict how his incoming administration would attempt to handle critical issues on the continent.
The UK budget announced in Parliament on 30 October was the first by a Labour government in 14 years which has also launched a review into defence procurement programmes.
The Australian government has placed a focus on Guided Weapons and Explosive Ordnance (GWEO) which has included the purchase of additional long-range rocket systems and investments in local production of missiles.
Connect with us on socials
