BAE Systems is warning of a difficult year ahead after reporting pre-tax profits down more than 60% in 2001. But it expects "strong growth" from 2003 due to higher defence spending and a resurgence in airliner sales.
The UK-based company - which reported profits of £70 million (£179 million in 2000) on sales of £13.1 billion ($18.2 billion), up from £12.2 billion in 2000 - wrote off £250 million after cancellation of the RJX programme. Other restructuring cost a further £120 million. BAE's 20% stake in Airbus saw it hit by the downturn in airliner sales.
Highlights included winning the Joint Strike Fighter competition partnered with Lockheed Martin and Northrop Grumman. The contract for 3,000 aircraft from the USA and UK will be worth at least £14 billion to BAE.
Source: Flight International
