BAE banking on Saudis for sales take-off
BAE Systems is expecting to win significant business from Saudi Arabia to boost international orders, as it looks to offset a weaker performance in the UK and US.
Europe’s largest defence contractor is looking to build upon the 72 Eurofighter Typhoon jets it sold to Saudi earlier this year.
We continue to see a high level of activity in international markets, including from our presence in the Kingdom of Saudi Arabia
Chief executive Ian King said: “We continue to see a high level of activity in international markets, including from our presence in the Kingdom of Saudi Arabia.
“Our relationship with our Saudi Arabian customers is very strong.” Orders with Saudi Arabia are expected to be for further Typhoon combat jets and upgrades to existing ones.
The company reported a 1.9 per cent nudge up in pre-tax profits to £541million in the first half.
Sales were down 11 per cent to £7.6billion because the timing of the delivery of Typhoon aircraft and other orders are weighted towards the second half. BAE, which is building two new aircraft carriers for Britain, said it was “finalising” £1.3billion worth of international orders and £1billion of naval contracts.
BAE considered a high-profile merger with European passenger jet Airbus-owner EADS in 2012, although the deal collapsed amid political divisions.
King yesterday rebuffed suggestions the deal could be revisited and said BAE had “a bright independent future”.
Its shares rose 2¾p to 427¾p.