BAE Systems can´t get a lock on Saudi Typhoon contract

FTSE 100-listed aerospace and defence giant BAE Systems has published an update about its contract negotiations with the Saudi Arabian government regarding the supply of Typhoon aircraft.

FTSE 100-listed aerospace and defence giant BAE Systems has published an update about its contract negotiations with the Saudi Arabian government regarding the supply of Typhoon aircraft.

In 2007, BAE Systems was contracted to supply the Royal Saudi Air Force with 72 Typhoon aircraft under the government-to-government Salam programme.

BAE System's company update stated: "Whilst progress has been made through the course of these negotiations, issues remain to be resolved before contract pricing, acceptable to all parties, can be agreed. Discussions continue towards a Salam agreement."

"Acceptable pricing terms remain the group's driver to such an agreement, not the timing of the settlement."

Potential impact on underlying earnings per share

Should an acceptable agreement not be reached before the group's full year results announcement, the impact on 2012 trading guidance would be to reduce the group's underlying earnings per share by approximately 3 pence per share.

BAE Systems, as the prime contractor to the UK Government, has delivered 24 Typhoon aircraft to date.

The company reported that "all parties remain committed to the programme and further aircraft are in-build for deliveries to recommence in 2013."

Omani contract on radarOn a more positive note, reports surfaced in afternoon trading that BAE Systems could announce a contract win with Oman, for Eurofighter Typhoons, on the next 21st of December.

BAE Systems' share price was down 0.95% to 342.70p at 15:42 on Wednesday afternoon.

RF

Recommended

A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022
Persimmon yields 12.3%, but can you trust it to deliver?
Share tips

Persimmon yields 12.3%, but can you trust it to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
17 Aug 2022
Cineworld faces a bleak future – investors should stay away
Share tips

Cineworld faces a bleak future – investors should stay away

Weighed down by crippling debts and with consumers tightening their belts, Cineworld's future does not look bright, says Rupert Hargreaves. Investors …
17 Aug 2022
Britain’s ten most-hated shares – w/e 12 August
Stocks and shares

Britain’s ten most-hated shares – w/e 12 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
16 Aug 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022