Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

BAE Systems raises dividend, launches new buyback on strong outlook

07/29/2021 | 04:27am EDT
FILE PHOTO: Trade visitors walk past an advertisement for BAE Systems at Farnborough International Airshow in Farnborough, Britain

LONDON (Reuters) -British defence company BAE Systems lifted annual guidance, raised its dividend and launched a new share buyback plan, after saying its programmes to build submarines, fighter jets and other equipment were all running smoothly.

BAE, whose main customers are the United States, Britain and Saudi Arabia, said it would hike its dividend to 9.9 pence, 5% up on last year's interim payout, and would start a 500 million pound ($697 million) share buyback over the next 12 months.

The plan to raise investor returns, which help lift the company's shares by more than 2% in early business, stands out at a time when many companies have suspended dividends to conserve cash and ride out the impact of the COVID-19 crisis.

The stock is up 15% over the last three months.

Defence has been largely unaffected by the pandemic, with governments sticking to military and security commitments, and in some cases raising them.

For the full-year, BAE said it expected underlying earnings per share to grow by 3% to 5% over last year's result, even if the pound continued to strengthen against the dollar, representing an improvement on previous forecasts.

BAE said action it took in 2020 to accelerate payments for its British pension deficit helped its finances, while its unit supplying commercial aviation started to recover in the period and its cyber security business also improved.

Agency Partners analyst Nick Cunningham said that the dividend payout was better than expected and noted the buyback was BAE's first since 2014.

BAE Systems said its confidence had been boosted by progress in ongoing projects, as it delivered electronic warfare systems for the F-35 fighter jet programme, made automation improvements to help ramp up production of combat vehicles and it approached full output of F-35 rear fuselages.

In its first-half to June 30, BAE's underlying earnings per share rose 25% to 21.9 pence in the period, beating consensus forecasts of 20.0 pence.

($1 = 0.7177 pounds)

(Reporting by Sarah Young; Editing by Kate Holton and Edmund Blair)

By Sarah Young


ę Reuters 2021
Latest news "Economy & Forex"
01:14pGoogle to buy more office space in NYC as big tech swoops down on real estate
RE
01:08pOFFENSIVE SECURITY : Unveils On-Demand Cybersecurity Training and Workforce Development Program with Learn Unlimited Subscription Offering
BU
01:03pFacebook to launch portable version of Portal video chat device
RE
01:00pE-commerce tech startup mirakl says valued at more than $3.5 bln in $555 mln funding round
RE
12:57pDraftKings courts UK's Entain as U.S. sports betting spurs deals
RE
12:52pCHINA EVERGRANDE : U.S. market better able to aborb potential market shock compared with 2008-SEC chair
RE
12:48pTakatso says it is still in talks over South African Airways investment
RE
12:45pWall Street recovers from Evergrande-led rout as defensives rise
RE
12:44pHandelsbanken Proposes to Return $1 Billion to Shareholders
DJ
12:42pMINISTRY OF EXTERNAL AFFAIRS OF REPUBLIC OF IN : Transcript of Foreign Secretary's special briefing on Prime Minister's visit to USA
PU
Latest news "Economy & Forex"