BAE SYSTEMS plc
PRELIMINARY ANNOUNCEMENT 2011
Results in brief
|
Results from continuing operations |
2011 |
Restated |
|
Sales |
£19,154m |
£22,275m |
|
Underlying EBITA |
£2,025m |
£2,179m |
|
Operating profit |
£1,580m |
£1,601m |
|
Underlying earnings per share: |
|
|
|
‑ including R&D tax benefit |
45.6p |
39.8p |
|
‑ excluding R&D tax benefit |
39.7p |
39.8p |
|
Basic earnings per share |
37.0p |
27.9p |
|
Order book |
£36.2bn |
£39.5bn |
|
Other results including discontinued operations |
2011 |
2010 |
|
Dividend per share |
18.8p |
17.5p |
|
Operating business cash flow |
£634m |
£1,187m |
|
Net debt (as defined by the Group) |
£(1,439)m |
£(242)m |
Financial Key Points
- Headline sales reduced by 14%
- Underlying EBITA of £2,025m (2010 £2,179m) impacted by:
- a £160m charge in the first half on the Omani Offshore Patrol Vessel (OPV) programme
- a £125m benefit from a UK Ministry of Defence settlement agreement
- a £60m benefit from the increase in the carrying value of the Trinidad and Tobago OPVs upon agreement of a sale to the Brazilian Navy
- deferred recognition of sales and profit relating to the formalisation of price escalation on the Salam Typhoon programme
- Benefit of 5.9p per share from an agreement with the UK tax authorities
- Underlying earnings per share broadly in line with 2010, excluding the tax agreement benefit
- Total dividend increased by 7.4% to 18.8p
- £500m market purchase of shares completed
- $1.25bn (£0.8bn) debt financing completed
Outlook
Whilst little sales growth can be expected for the Group in 2012 in the current market conditions, modest growth in underlying earnings per share is anticipated, assuming a satisfactory conclusion to Salam negotiations in 2012 and excluding the benefit of the 2011 Research & Development tax settlement.
- Electronic Systems sales in 2012 are expected to be broadly similar to those in 2011 with margins expected to be within a range of 12% to 14%.
- Mid-single digit sales growth is expected for Cyber & Intelligence in 2012 with margins expected to be in the 8.5% to 9.5% range.
- In Platforms & Services (US), Land & Armaments sales of around $5bn (£3.1bn) are anticipated with margins approaching 10%. Sales in Support Solutions are anticipated to be similar to the 2011 level with slightly lower margins.
- Sales for Platforms & Services (UK) are expected to remain broadly similar to last year's with margins anticipated to be within a 10% to 12% range.
- Significant growth in sales for Platforms & Services (International) is anticipated with margins expected around the 10% level.
- HQ costs are expected to be broadly similar to 2011 and Group earnings are expected to reflect lower finance costs. An effective tax rate within a 26% to 28% range is now expected.
A higher level of operating business cash inflow7 is planned for the Group with the anticipated benefit of cash payments related to the Salam programme in 2012.
