Earnings take off at BAE Systems

Defence giant BAE Systems revealed an annual sales rise of £1.1bn today as it announced its 2016 full year results.

BAE Systems, which has plane-making plants at Warton and Samlesbury has also named its next chief executive after confirming Ian King will step down this year after nine years in the hot-seat.

Commenting on today’s results, outgoing chief executive Ian King said: “2016 was a good year for BAE Systems.

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

Orders totalling £1bn have been received via Eurofighter from BAE Systems' Italian Eurofighter partner, Leonardo, for its share of work on the 28 Typhoon aircraft for Kuwait.

And in November, a team including BAE Systems, was chosen to be a provider of maintenance repair, overhaul and upgrade of F-35 Lightning II avionics and components, during the period 2021 to 2025 on a global basis and from 2025 onwards for the European region.

“We achieved key targets on Typhoon and F-35 Lightning II production, long-term support arrangements on Typhoon, F-35 Lightning II and Hawk and an agreement between the UK and French Governments to progress the new unmanned combat air systems demonstrator programme.