business-in-london.biz
 
 
New records

London news

BAE plans ?1bn share buyback as profit stalls

0000-00-00

CATHY ADAMS

DEFENCE and aerospace firm BAE Systems yesterday launched an ambitious ?1bn share buyback programme, as evidence of the “robust performance” of the FTSE firm.

Chief executive Ian King said he could see “green shoots” in the company, which gave it the confidence to unveil the buyback, although full implementation still hinges on discussions with Saudi Arabia over pricing of a key contract.

Despite its optimism, BAE yesterday posted a six per cent fall in profit,, and sales over the year fell seven per cent.

Full-year underlying earnings before interest, tax and amortisation fell to ?1.9bn, hurt by unresolved discussions over pricing of the Saudi Arabian contract to supply the Gulf state with Typhoon aircraft.

BAE warned that its key UK and US markets would be “constrained” this year.

It has come under pressure from shrinking military budgets in the US and the UK, as governments try to reel in large budget deficits.

The UK government pledged in 2010 to slash its defence spending by eight per cent by 2014 while the US – from which BAE derives around 40 per cent of its income – already has plans in place to cut $487bn (?320bn) from its defence budget for the next decade.

BAE – whose proposed merger with European peer EADS collapsed in October as Germany refused to give it the green light – is “absolutely not” in discussions to revive the tie-up, King said yesterday.

Meanwhile, BAE yesterday inked a longevity swap with L&G to safeguard it against the risk that its 31,000 pensioners live longer than current estimates.

CATEGORY: Barristers


Pages: [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19]

Alan Saggerson Anthony Korn C Bott Craig Moore
David Thomson Dr Pepper's Law Offices Equity Chambers Halton House Ltd.
Harry Potter J M Bryant Jason Elliott Jill Martin
Marvin Gederon Matthew Chapman Michael Chapman Scott Sullivan
Simon Blackford T Bowles T C Dutton Timothy Cowen
Z Bredemear 1 Essex Court Chambers 11 Kings Bench Walk Chambers 23 Essex Street Chambers
36 Bedford Row A Goddard Adam Deacock Adam Goodison
Adrienne Page Aldbury Chambers Andrew Moylan Arden Chambers
Brick Court Chambers Chambers Of Anthony Watson Chambers Of Christopher Wilson-Smith Q C Chambers Of David Turner QC
Chambers Of Jane Rayson Chambers Of Phillip Singer Chambers Of Rock Tansey Christopher D Floyd
Cloisters Desmond De Silva Edmund Cullen Ely Place Chambers
Erskine Chambers Fountain Court Chambers Furnival Chambers Henderson Chambers
Hogarth Chambers Hollis Whiteman Chambers Honourable Society Of The Middle Temple J A Perry
Janet Bignell John Hendy Keating Chambers Lamb Chambers
Lord Carlile Of Berriew Q C M Vera-Hodge Matrix Chambers Mayfax Ltd
Megan Thomas Miss Susan Trevethan Mitre House Chambers Morag Ellis
New Square Chambers Nicholas Taggart Peter Henry R Bramwell
S Atherton S Smith Simon Freelands Siward Atkins
T Sisley The Chambers Of Stephen Solley Qc The Chambers Of William Clegg The Honorable Society Of Grays Inn
Thomas Grant Thomas Moore Timothy Evans Two Garden Court Chambers
V R Chapman Veritas Chambers Victor Joffe William Upton
2 Middle Temple Lane Chambers 2 Temple Gardens - Barrister Chambers 38 Eldon Chambers 9 Gough Square Barristers
A C Cooke A Clemens A Edie A Giz
A Gumbiti-Simuto A J Barton A Jafferjee A Knight
A Pilling A Sheppard A Slaughter A Storey-Rey