BAE Systems boosts 2015 sales and profits

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Sales at defence giant BAE Systems increased by £1.3 billion to £17.9bn in 2015.

This included a £0.8bn benefit to UK sales from increased aircraft deliveries to Saudi Arabia, sales from the trading of equipment on the European Typhoon programme and increased activity across the naval business. Exchange translation added £0.2bn compared to 2014.

Operating profit was £1,502m in 2015. This compared with £1,300m a year earlier.

BAE Systems said the order backlog of £36.8bn underpinned its confidence in the future prospects for the business.

However, underlying earnings before interest, taxes, and amortization reduced by £19 million, to £1,683m, impacted by both a slowdown in Typhoon production and Australian shipyard impairment and rationalisation charges.

Ian King, chief executive of BAE Systems, said: “We have delivered another year of solid performance. BAE Systems has a large order backlog generated by a well-balanced portfolio of businesses serving the needs of customers in many of the world’s larger accessible markets.

“The group is well placed to continue to generate attractive returns for shareholders as defence budgets recover and our commercial adjacencies of cyber and commercial electronics continue to grow."