Newspaper article The Journal (Newcastle, England)

BAE Expects 'Good Growth' despite Pounds 44m Loss

Newspaper article The Journal (Newcastle, England)

BAE Expects 'Good Growth' despite Pounds 44m Loss

Article excerpt

DEFENCE group BAE Systems yesterday said it continued to expect "good growth" for 2009 despite impairments causing it to report a first half loss.

BAE, which runs two plants on Tyneside, posted a pounds 44m pre-tax loss, from a pounds 791m profit last year, after taking non-cash hit relating to a previous acquisition and currency-related financial instruments.

But the firm, which has benefited in recent years from high levels of military spending, said sales in the six months to June 30 were 28% up on the same period last year at pounds 9.94bn. On a like-for-like basis sales rose 6%.

Underlying earnings rose 19% to pounds 979m from pounds 820m.

"The group continues to expect good growth for 2009 as a whole, despite a lower level of land vehicle sales," the firm said. It added that it expected to benefit from the continued weakness of sterling in the second half.

BAE said sales at its land and armaments division were expected to de-clinthis year because the ''significant reduction" in deliveries for the US Mine Resistant Ambush Protected (MRAP) programme would be only partially offset by other activities. …

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