viewBAE Systems

BAE Systems to pay interim dividend in spite of profit drop as it expects full-year sales to rise

The interim dividend of 9.4p per share, is in line with 2019's half-year payout.

BAE Systems - BAE Systems declares dividend as it expects sales to increase

BAE Systems PLC (LON:BA.) is paying a maintained interim dividend although its half-year profits dropped by 11% as it said it expects group sales to increase by around 5% for the whole year.

The FTSE 100-listed defence equipment giant reported increased volumes in F-35, Combat Vehicles and growth in the electronic defence portfolio in its results for the six months ended June 30, 2020, offsetting a shortfall in its commercial business.

READ: BAE Systems set for second-half bounce-back suggest UBS

Overall sales in the six month period rose by 5% to £9.8bn, BAE said while its profit before tax fell by 11% to £689mln due to disruption from the coronavirus pandemic as previously warned. Net debt at the half-year-end was £2bn.

The group said it expects full-year underlying earnings per share to drop by 1%-5% from last year's 45.8p, with free cash flow at £800mln.

BAE's board has declared an interim dividend of 9.4p per share, is in line with 2019's half-year payout.

Quick facts: BAE Systems

Price: 512.2 GBX

Market: LSE
Market Cap: £16.46 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


Henderson High Income on identifying revenue-generating stocks in the...

David Smith, fund manager of Henderson High Income, and the Chairman of the Board discuss how the company has identified revenue generating stocks in the current environment. David also explains how active management through bond allocation and an increased exposure to overseas equities has...

2 hours, 10 minutes ago

2 min read