23 Feb 2006
“2005 was a landmark year for BAE Systems, in which we delivered a strong set of financial results and met our top ten objectives.
We have consistently delivered on our strategy and have clearly established ourselves as the premier transatlantic defence and aerospace company.
We have strengthened our position in the United States, restructured our businesses in Europe and we now have a strategic framework established with our customer for our business in the UK. Finally, we have made great progress in establishing a way forward for our pension schemes.”
Mike Turner, CEO BAE Systems
- Good financial performance – free shares triggered
- £59.8 billion order book
- US position strengthened
- Restructured European portfolio
- Improved basis of UK business outlook - DIS
- New export opportunities
- Pensions - a way ahead
Finance
- Free shares - 2nd yr running, high performance triggered £418 free shares per person, the maximum possible under the scheme (cash for employees - $729 at close of business on 21 February 2006 - where local tax rules mean we are unable to issue shares)
- Good programme execution
- Successful integration of acquisitions
- Strong portfolio of businesses performing well in all sectors
- Good cash performance
- Dividend increased by 8.4%
Delivering the US Strategy
- From sales in 2000 of $2½bn to pro forma sales in 2005 of $8½bn
- Good organic growth
- United Defense acquisition delivers Land Systems as number 2 in the world
- Continuing growth market outlook
UK Defence Industrial Strategy
- Strategic Foresight – opportunities as well as challenges
- Emphasis on partnership between industry and the MoD
- Need for high level systems integration skills in UK
- Recognises need for UK control of key technologies
- Also recognises challenges for both parties
2006 Looking ahead
- Deliver 2006 financial targets
- Ensure application of mandated business processes
- Increase focus on schedule and cost commitments
- Continue to grow the US business
- Implementation of UK Defence Industrial Strategy
- Focus on key export opportunities
- Progress business in Kingdom of Saudi Arabia
- Continue to grow support business
- Implement way forward on pension schemes
- Drive to performance culture
For further information, please contact:
Richard Coltart, BAE Systems
Tel: +44- (0)7801-712 042
richard.coltart@baesystems.com
Lisa Hillary-Tee, BAE Systems
Tel: +44 (0)7801-718 994
lisa.hillary-tee@baesystems.com
