Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
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"
07:56aGas price spike to push more UK suppliers out of business, officials say
07:55aVodafone Idea confident of funding deal after boost from govt package
07:51aChina to strengthen policy coordination to cope with challenge - cabinet
07:48aFormer UK regulator Ross to chair EU securities watchdog ESMA
07:42aU.S. farmers face supply shortages, higher costs after Hurricane Ida
07:35aBritain tells its food industry to prepare for CO2 price shock
07:32aFormer UK regulator Ross to chair EU securities watchdog ESMA
07:32aTHREATQUOTIENT : Continues Tradition of Celebrating World Rhino Day in 2021
07:29aGermany won't pay unvaccinated workers in quarantine - draft
07:28aToronto futures rise as crude prices climb
Latest news "Economy & Forex"