LONDON May 8 BAE Systems left its
outlook for the year unchanged and forecast "modest growth" in
earnings per share for 2013, subject to continued uncertainties
over defence budget cuts in the United States.
Europe's largest defence contractor said on Wednesday that
its forecast excluded the benefit from the share buyback
programme launched in February and did not include a potential 3
pence per share earnings uplift should the company conclude
pricing talks with Saudi Arabia on a fighter jet contract.
"BAE Systems has continued to perform in line with
management expectations announced at the preliminary results in
February," Chief Executive Ian King said.
"We continue to pursue growth in our international markets
and have built on the strong international order intake in 2012
with a further 2.3 billion pounds of non-UK/US orders received
in the year to date, reflecting the strength of our broad based
and diverse business."
BAE is searching for new avenues of growth after the
collapse of its $45 billion merger with Franco-German aerospace
group EADS and has focused on markets such as the
It said that its 2013 forecast does not reflect the impact
of US defence spending cuts because it does not have sufficient
Across-the-board U.S. government cuts, known as
sequestration, began in March and will force the Pentagon to
reduce its proposed spending for this year by a further $42
BAE also said that completion of its 1 billion pound ($1.6
billion) share buyback programme hinges on the completion of the
The contract, known as the Salam deal, was first signed with
Saudi Arabia in 2007 but has been delayed by the talks on
pricing. BAE has already sent 24 of the 72 Typhoon aircraft
ordered to the Royal Saudi Air Force and deliveries started
again in April, it said.