By RTT News, October 10, 2013, 04:15:00 AM EDT
(RTTNews.com) - British defence and security firm BAE Systems Plc (BA.L, BAESY.PK) Thursday said trading since its half-year results announcement has been consistent with management expectations, and that its outlook for full-year 2013 remains unchanged.
BAE Systems also warned that the protracted US government shutdown is expected to have some progressive impact to its US operations, as about 1,200 employees across Intelligence & Security and Support Solutions businesses have been temporarily directed not to report to work. In addition, the government spending and procurement decisions were impacted by the continuing US budget uncertainty.
In an interim management statement for the period since July 1, the company said it still expects double-digit growth in underlying earnings per share for full-year 2013. The result includes benefit from share repurchase programme and downside arising from reductions to US defence budgets.
It was in February that the Group initiated a share repurchase programme of up to 1 billion pounds over three years, full implementation of which remains subject to satisfactory resolution of the Salam Typhoon price escalation negotiations.
The Group still anticipates a satisfactory conclusion to discussions with the Kingdom of Saudi Arabia relating to the formalisation of price escalation on the Salam Typhoon programme this year. However, earnings per share for 2013 would be impacted by about 6 pence to 7 pence, in the event of extension of negotiations.
The company said discussions are continuing with the UK Ministry of Defence to balance naval surface shipbuilding capacity with future warship demand. Also, it is having discussions related to potential amendments to the contract for the Queen Elizabeth Class aircraft carriers, to reflect the increased maturity of the programme.
The company's international market activity includes prospects in the United Arab Emirates for supply of Typhoon aircraft and other capabilities. Year-to-date, BAE has secured 5 billion pounds of non-UK/US order.
In August, the Group had announced that Linda Hudson would retire as president and CEO of BAE Systems, Inc. and as an executive director of BAE Systems Plc. However, she has agreed to remain in such posts no later than March 31, 2014, while a search is conducted for her successor.
BAE Systems is scheduled to announce its full-year results on February 20.
In London, BAE Systems shares are currently trading at 443.2 pence, up 3.2 pence or 0.73 percent.
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