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BAE Systems underlying EBITA £1,702 million

Staff writer ▼ | February 20, 2015
BAE Systems plc reported its preliminary results for 2014. Underlying EBITA was £1,702 million.
BAE Systems
BAE Systems   The year-on-year reduction of £1.5bn
Sales were £16.6bn. The year-on-year reduction of £1.5bn reflected £0.6bn of adverse exchange rate translation, the expected volume reductions in Land & Armaments and the previous year's benefit from the one-off price settlement for Salam Typhoon.

Underlying EBITA was £1,702m. The year-on-year position was broadly unchanged after allowing for exchange rate translation and the one-off 2013 price settlement.

Margin performance delivered a return on sales of 10.2%.

Underlying earnings per share increased from 37.6p to 38.0p after excluding the benefit from the price escalation settlement in 2013.

£925m returned to shareholders in 2014, from share repurchase programme and dividends. Large order backlog was £40.5bn.

Ian King, chief executive, said: "In 2014, BAE Systems delivered a solid overall performance, in line with guidance. We continue to win significant new business with over £10bn of new orders from the UK and US for the third successive year. As a result, the large order backlog1,5 of £40.5bn continues to provide good, multi-year visibility across many of our businesses.

"Looking ahead, defence spending remains a high priority in a number of international markets. In the UK, we benefit from long-term contracts, notwithstanding continued pressure on public spending. We believe US budgets are now relatively stable, with some early indications of a modest improvement in 2016.