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BAE says earnings could be hit by Saudi Arabia deal
December 19, 2012 / 2:11 PM / 5 years ago

BAE says earnings could be hit by Saudi Arabia deal

LONDON, Dec 19 (Reuters) - Britain’s BAE Systems warned that its 2012 earnings could be impacted should it not reach an agreement over the pricing of a contract with Saudi Arabia before the publication of its annual results.

The company said on Wednesday that it continued to be in discussions with Saudi Arabia over the pricing of the contract to supply 72 Typhoon aircraft which was signed in 2007. The Salam deal, as it is known, is worth around 4.5 billion pounds ($7 billion).

“Should an acceptable agreement not be reached before the group’s full year results announcement, the impact on 2012 trading guidance would be to reduce the Group’s underlying earnings per share by approximately 3 pence per share,” the company said in a statement.

Of the 72 aircraft ordered, 24 have been delivered to the Royal Saudi Air Force.

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