'˜Good year' for BAE Systems

A Eurofighter TyphoonA Eurofighter Typhoon
A Eurofighter Typhoon
DEFENCE giant BAE Systems has reported a 'good year' with operating profits up from £1.5bn in 2015 to £1.7bn.

Sales rose to £19bn, up from £17.9bn in 2015.

BAE Systems employs around 13,000 people in its Military Air & Information business across 30 locations, including Warton and Samlesbury and at Brough, RAF Coningsby and RAF Marham in the East of England.

Chris Boardman, Managing Director at Military Air & information, said: “We made good progress in 2016 thanks to the dedication of our highly skilled workforce. We achieved key targets on Typhoon and F-35 Lightning II production, long-term support arrangements on Typhoon, F-35 Lightning II and Hawk and an agreement between the UK and French Governments to progress the new unmanned combat air systems demonstrator programme.

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“The recent heads of agreement signed with Turkish Aerospace Industries, ahead of a planned contract to collaborate on the first design and development phase of an indigenous fifth-generation fighter jet, further helps to support critical skills, technology and technical expertise to the benefit of our business and the wider economy.”

Highlights of 2016 include:

The UK and French Governments announced a €2bn (£1.7bn) programme to build operationally representative unmanned combat air system demonstrators following a successful joint feasibility study.

A ten-year partnership arrangement with the UK Ministry of Defence (MOD) to support the UK Typhoon fleet, expected to be worth at least £2.1bn, was signed in July.

The Eurofighter Typhoon’s capabilities continue to be enhanced with the ongoing integration of the Captor E-Scan radar and the Storm Shadow, Meteor and Brimstone 2 missiles as part of European capability delivery programmes.

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Ian King, Chief Executive, said: “2016 was a good year for BAE Systems. Our strategy is well defined; we have a large order backlog, long-term programme positions, strong programme execution and a well-balanced portfolio.

“With an improved outlook for defence budgets in a number of our markets, we are well placed to continue to generate attractive returns for shareholders.”