BAE SYSTEMS - Integration Delivers Synergies With Strong Order Book, Balance Sheet and Cash Generation.Business Editors LONDON--(BUSINESS WIRE)--March 1, 2001 BAE SYSTEMS BAE Systems British manufacturer of aircraft, missiles, avionics, naval vessels, and other aerospace and defense products. BAE Systems was formed (1999) from the merger of British Aerospace (BAe) with Marconi Electronic Systems. today announced preliminary results following its success in creating a well-balanced company underpinned by a strong order book, strong balance sheet and excellent cash generation. -- Profit, before interest excluding exceptional items and goodwill amortisation, of (pound)950 million (1999 proforma (pound)1,115 million) -- Order book (pound)41 billion -- Earnings per share 19.2p -- Dividend per share 8.5p A significant issue affecting the 2000 result was the major reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. of the Nimrod Nimrod, in the Bible, descendant of Cush who is recorded as a mighty hunter. Nimrod Biblical hunter of great prowess. [O.T.: Genesis 10:9; Br. Lit.: Paradise Lost] See : Hunting maritime patrol Maritime patrol is the task of monitoring areas of water. Generally conducted by military and law enforcement agencies, maritime patrol is usually aimed at identifying human activities. aircraft contract, which resulted in a charge before tax for the year of (pound)300 million. This had the effect of reducing diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from 25.8p to 19.2p. The underlying profit for the year was (pound)1.25bn, excluding exceptional items, goodwill amortisation and the Nimrod charge. BAE SYSTEMS said that 2000 had been an exciting and exacting year in successfully bringing together the former British Aerospace British Aerospace (BAe) was a UK aircraft and defence systems manufacturer, now part of BAE Systems. History The company was formed as a statutory corporation on April 29, 1977 as a result the Aircraft and Shipbuilding Industries Act. and Marconi Electronic Systems Marconi Electronic Systems (MES), or GEC-Marconi as it was until 1998, was the defence arm of The General Electric Company (GEC). It was demerged from GEC and acquired by British Aerospace (BAe) on November 30 1999 to form BAE Systems. GEC then renamed itself Marconi plc. to form a global systems, defence and aerospace company. BAE SYSTEMS stressed that the integration of the two companies was now delivering the planned synergies. Chairman Sir Richard Evans Richard Evans could be:
Chief Executive John Weston For the British businessman, see . Sir John Weston KCMG (born 1938) is a retired British diplomat. He was the UK Permanent Representative on the North Atlantic Council (NATO) from 1992 to 1995, and the British Permanent Representative to the United Nations (UN) from 1995 to 1998. added: "The integration has been a real success. We are, today, operating as one fully integrated company and achieving everything we set out to do in this regard. Looking ahead, BAE SYSTEMS is now a well-balanced company underpinned by a strong order book, strong balance sheet and excellent cash generation." Cash performance across the business was strong with net operating cash inflows of (pound)1.9bn. After the US acquisitions of the Control Systems and AES electronics businesses from Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. for $2.3 bn ((pound)1.6bn) the resultant net indebtedness of the group at the year end marginally increased to (pound)0.9bn. The US acquisitions are a major step forward, further strengthening BAE SYSTEMS' position as a significant competitor in the key US defence market. The order book was again strong at (pound)41 bn benefiting from a (pound)1.2bn contract to design, develop, manufacture, test and deliver the first Type 45 destroyers
The United Kingdom's Type 45 destroyer (also known as the D or Daring class) is a state of the art air defence destroyer programme of the Royal Navy. for the Royal Navy together with the strong market performance from Airbus. Order intake from the UK Ministry of Defence is falling short of expected levels, which, with lower than anticipated Hawk export orders, is resulting in a lower level of activity. As a consequence, capacity - primarily in the Programmes business group - is being reduced with a restructuring programme resulting in exceptional charges to profits for 2000 and 2001. This restructuring programme, which was announced in January 2001, will strengthen the business as it bridges the period between production of Tornado and Eurofighter Typhoon This article is about a fighter aircraft. For the computer game, see Eurofighter Typhoon (computer game). “EF2000” redirects here. For the computer game, see EF2000 (computer game). military aircraft. BAE SYSTEMS has continued to make good progress with the rest of the business. The agreement with EADS EADS European Aeronautic Defence and Space Company N.V. EADS Expeditionary Air Defense System (USMC) EADS Extended Air Defense Systems EADS Environmental Assessment Data System EADS Echelons Above Division Study to form an integrated joint company to manage the Airbus business became effective on January 1 2001. Airbus is entering a phase of strong profitable growth built on a forward order book of some 1,626 aircraft valued at $121bn. Further growth will be achieved with the launch of the A380 family of very large, long-range aircraft seating 480/650 passengers. The new Airbus company, into which BAE SYSTEMS is transferring its wing manufacturing facility in return for a 20 per cent interest, will generate substantial savings and enhance customer focus from a streamlined organisation and result in a very significant uplift in value for BAE SYSTEMS. Looking to the future, the results in 2001, excluding restructuring provisions, are expected to be broadly unchanged compared with the underlying performance in 2000 before the Nimrod charge. A resumption of earnings growth in 2002 and beyond is confidently expected as the company benefits from its investments in the US and from Airbus growth, together with the progression of Eurofighter Typhoon and naval programmes into the production phase. About BAE SYSTEMS BAE SYSTEMS, is the truly global systems, defence and aerospace company. BAE SYSTEMS employs more than 100,000 people, in eight home markets around the world and has annual sales of some (pound)12 billion. The company offers an unrivalled global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE SYSTEMS designs and manufactures civil and military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided we apon systems and a range of other defence products. Photographs for global download are available at www.newscast-online.com For further information please contact: Charlie Miller or Richard Coltart, BAE SYSTEMS, Farnborough, Hampshire Tel: +44 (0) 1252 383479/383550 Fax: +44 (0) 1252 383947 Issued by: BAE SYSTEMS, Farnborough, Hampshire GU14 6YU, United Kingdom Tel: +44 (0) 1252 383550 Fax: +44 (0) 1252 383947 www.baesystems.com |
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