Defence firm BAE Systems PLC (LON:BA.) said it expects further contract awards for its Typhoon aircraft.
In a trading statement in which it reiterated full-year earnings guidance it said export activity continues to be supported by the UK government and, although there can be no certainty as to the timing of orders, discussions with current and prospective operators of the Typhoon aircraft continue to support the group's expectations for additional Typhoon contract awards.
Discussions between BAE Systems, the UK government and the Saudi Arabian government are progressing to define the scope and terms of the next five-year Saudi British Defence Co-operation Programme.
Trading this year has been in line with management expectations, and the group continues to expect underlying earnings per sharer t be five to ten per cent higher than last year’s 36.6p.
In its home market, the company said it had made good progress with its Ministry of Defence customer on implementing the Strategic Defence and Security Review.
On the maritime side of things, the UK Successor Submarine production programme commenced with first steel cut on the 5 October and around £1.3bn of funding committed for the initial production award.
“In surface ships we are progressing towards defining an overall Type 26 build contract and a contract is being finalised for the fourth and fifth new River Class Offshore Patrol Vessels,” the company said.
Across the pond, the US defence outlook remains positive in BAe’s view, and the ramp-up on a number of the group’s production programmes remains on course.
In August, the group delivered ship number six stateside under its commercial shipbuilding contracts. The remaining two ships are expected to be completed next year.