BAE Systems ‘well placed’ despite drop in earnings

0 The group pointed to an improving outlook for defence budgets in a number of its markets Govan shipyard owner BAE Systems has reported a drop in annual profits after taking a charge on its cyber security business and said it expects earnings to flatline in 2018.

The defence giant said lower growth forecasts for its applied intelligence unit resulted in a £384 million hit, which helped drag operating profit down 15 per cent to £1.48 billion in 2017.

Sales for the year rose 3 per cent to £19.6 billion, which the company said largely reflected currency effects.

Chief executive Charles Woodburn said: “We delivered a good performance in 2017, consistent with our expectations for the year.

“We start 2018 with a streamlined organisation and a strong focus on programme execution, technology and enhanced competitiveness, providing a solid foundation for medium-term growth.

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