BAE Systems has released its yearly results for 2014, revealing a strong overall performance, £10bn of new orders from the UK and US for the third consecutive year, and a backlog of £40.5bn.
The firm recorded sales of £16.6bn and the year-on-year reduction of £1.5bn reflected £0.6bn of adverse exchange rate translation.
The underlying EBITA was £1,702m and 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 and £925m was returned to shareholders in 2014, from its share repurchase programme and dividends.
Defence spending remains a high priority in a number of international markets and the UK arm of the firm benefits from long-term contracts, notwithstanding continued pressure on public spending.
US budgets are now relatively stable, with some early indications of a modest improvement in 2016.
Ian King, Chief Executive, BAE Systems, said: “These are competitive times and we will continue to invest in and develop the technology, skills and market positions needed to drive the business forward.
“The Group is well positioned to continue to deliver shareholder value.”
|Underlying earnings per share||38.0p||42.0p|
|Basic earnings per share||23.4p||5.2p|
|Dividend per share||20.5p||20.1p|
|Operating business cash flow||£1,191m||£147m|
|Net debt (as defined by the Group)||£(1,032)m||£(699)m|