Defence giant BAE Systems sticks with full-year guidance

BAE Systems has maintained its outlook for 2018 and said Brexit is unlikely to have a major impact on its operations.

The FTSE 100 defence giant flagged progress on air and maritime programme developments, as well as an increase in production of the F-35 in the UK.

The F-35 programme is aimed at delivering a multi-role attack aircraft capable of operating from land and sea to nations across the globe.

In addition, the company said its UK-managed Applied Intelligence business remains on track to achieve a break-even position by year end.

BAE also noted that it is preparing for potential changes in the regulatory environment after Brexit.

The company intends to strengthen bilateral relationships with key partners in Europe, but added that it expects near-term effects on the business from Brexit to be limited.

BAE said: “The final agreement of the terms of the UK’s exit from the EU after March 2019 will be important to enable companies to prepare for potential changes in the regulatory environment.

“There is relatively limited UK-EU trading and movement of EU nationals into and out of BAE Systems’ UK businesses and the resulting Brexit near-term impacts across the business are likely to be limited.

“BAE Systems will support the UK Government in achieving its aim of ensuring that the UK maintains its key role in European security and defence post-Brexit, and to strengthen bilateral relationships with key partners in Europe.”

Shares were trading 0.4% higher on Thursday morning at 535.6p.

In the US, BAE said it has further strengthened management in the combat vehicles business to meet the significant increase in production.