Re Contract

BAE Systems and the Government of the Sultanate of Oman have entered into a contract for the supply of Typhoon and Hawk Advanced Jet Trainer aircraft to the Royal Air Force of Oman. The contract, valued at approximately £2.5 billion, provides for the delivery of 12 Typhoon and 8 Hawk aircraft starting in 2017.

BAE Systems is the prime contractor for both the provision of the aircraft and the agreed arrangements for in-service support.

Great News..

Closed (spreads) @ 342.8 + 38.2

Nice one squirrel.

Probably being greedy, back in long on the spreads @ 350.4 if it can breach strong resistance @ 360.0 next target 380.0 pure punt. Tight stop @ 344.0

Final Results

FINANCIAL KEY POINTS

- Sales1 reduced by 7%

- Underlying EBITA2 reduced by 6% to £1,895m. Deferred recognition of sales and profit relating to the formalisation of price escalation on the Salam Typhoon programme

- Underlying earnings3 per share down by 2% (excluding the benefit in 2011 of the UK tax settlement)

- Order backlog1,5 increased by 8% to £42.4bn

- Non-US and UK order intake1 increased to £11.2bn from £4.8bn in 2011

- Total dividend increased by 4% to 19.5p

- Operating business cash flow6 increased to £2.7bn

- Net cash7 balance of £387m

- Three-year share repurchase programme of up to £1bn initiated

- Longevity risk on £2.7bn of pension scheme liabilities transferred to the insurance market

OUTLOOK

This outlook statement assumes US budgets are subject to Continuing Resolution for the first quarter of 2013 only and does not reflect the impact that might result from a US sequestration.

Subject to near-term uncertainties relating to US defence budgets, modest growth in underlying earnings3 per share is anticipated for 2013. This excludes any benefit from the share repurchase programme in 2013. In addition, and assuming a satisfactory conclusion to Salam pricing negotiations this year, there would be a further increase of around 3 pence in underlying earnings3 per share.

- Electronic Systems sales1 are expected to be at a similar level to those in 2012 with margins expected to be slightly lower within a range of 12% to 14%.

- Cyber & Intelligence sales1 are expected to be marginally lower than those in 2012 with margins expected to be within an 8% to 9% range.

- In Platforms & Services (US), Land & Armaments sales1 are expected to be approximately 10% below the 2012 level with margins around 8%. Support Solutions sales1 are expected to be marginally higher than in 2012, with slightly reduced margins.

- Platforms & Services (UK) sales1 in 2013 are expected to increase by around 25%, assuming a price escalation settlement and resumption of aircraft deliveries on the Salam Typhoon contract. Margins are expected to be similar to those in 2012.

- Platforms & Services (International) sales1 are expected to be marginally higher than in 2012. Margins are expected to benefit from the anticipated resolution of Salam Typhoon price escalation, and are expected to be at the top end of a 10% to 12% range.

- HQ costs are expected to be more than 10% lower than in 2012 and Group earnings3 are expected to reflect marginally lower underlying finance costs. An effective tax rate within a 23% to 25% range is expected.

Director/PDMR Shareholding

The Company was notified today that Charlotte Lambkin, a Person Discharging Managerial Responsibilities, exercised options over 8,226 ordinary shares of 2.5 pence each in BAE Systems plc under the BAE Systems Performance Share Plan at nil consideration on 22 February 2013 and subsequently disposed of 4,994 of those shares at a price of 350.087 pence per share. The transaction took place on the London Stock Exchange.

This stock has been pretty consistant for the last five years,rising in Nov/Dec then takes a bath around now. Way the market is going reckon it will easily go through 380.0, any sign of weakness good for a short punt.

Sell order triggered on the spreads @ 376.80 tight stop.

Out for now @ 383.71 - 6.91

Probably knitting fog, another bash at a short on the spreads @ 385.89 tight stop.

Stop to entry for risk free trade.

No sign of weakness whatsoever :O) Suspect increase in divi by 4% to 19.5p has a lot to do with it. (Ex-Divi 17/04 record date 19/04). If 400.0 breached can see 420.0 next resistance and 5 year highs. Think I'll just wait and see how it plays out next week still think it could go either way.

Had a go at breaking 400.0, may well crack it today.

Despite JP Morgan's downgrade to underweight from neutral today still a wee bit wary of going short yet. Ex Divi next Wed, lot can happen between now and then.

Another bash short @ 379.50 tight stop, initial target 360.0

I hope you mean 389.50! :-)

On Caps 379.50 skinny closed @ 378.70

Odd - when I looked there was a big white candle @389.8!

Long day!

Put my stop to entry today fully expecting to get stopped out after US jobs report, didn't happen.