Thursday preview: BAE to post earnings fall while Bumi plc holds meeting
BAE Systems is expected to post a fall in earnings for 2012 on Thursday following last year's failed merger with European Aeronautic, Defence & Space Co. (EADS), the parent company of Airbus.
BAE Systems is expected to post a fall in earnings for 2012 on Thursday following last year's failed merger with European Aeronautic, Defence & Space Co. (EADS), the parent company of Airbus.
Europe's largest arms maker is likely to record an 8.0% fall in annual net income to £1.14bn, according to analysts surveyed by Bloomberg
Analysts, however, predicted sales rose to £18.9bn from £17.7bn during the year.
The news comes after government refused to back a planned merger between BAE and EADS in October.
The companies were looking to join forces as BAE tackled declining defence spending in Europe and the US, a market that EADS in had sought to penetrate.
Investors were concerned such a deal would water down dividends and the defence portfolio.
BAE caused a further stir after saying full-year targets were at jeopardy as it had trouble trying to complete a fighter-jet sale to Saudi Arabia.
Chief Executive Officer Ian King told employees in a memo that 2012 was "a challenging year both in terms of the economic environment in which we are operating and the merger discussions we held with EADS".
While the EADS deal fell through, BAE has signed a five-year agreement with Vodafone which will see the companies produce and sell mobile security products.
Another company in the spotlight Thursday will be Bumi plc which will hold an extraordinary shareholder meeting to vote on a proposal by founder Nathaniel Rothschild to replace 12 of the 14 members of the board.
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