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

Interim Management Statement

Trading for the period has been consistent with management expectations at the time of the 2012 results announcement on 21 February 2013 and our outlook remains unchanged. Modest growth in underlying earnings per share for 2013 is anticipated, subject to the continued uncertainties relating to US defence budgets. This excludes the benefit from the share repurchase programme initiated in February 2013. In addition, and assuming a satisfactory conclusion to discussions with the Kingdom of Saudi Arabia relating to the formalisation of price escalation on the Salam Typhoon programme, there would be a further increase of around 3 pence in underlying earnings per share.

This outlook does not reflect the impacts on US defence spending arising from Sequestration. In March 2013, legislation was passed to set funding levels for the remainder of the 2013 Fiscal Year, which has allowed some limited flexibility to enable near-term priorities to be pursued. In April, a Presidential Request for a Fiscal Year 2014 budget was tabled which would replace Sequestration with selective spending cuts. However, and notwithstanding these developments, there is at this point insufficient detail on which to base revised outlook assumptions.

With the announcement of the full year results in February, the Group initiated a share repurchase programme of up to £1bn over three years. Full implementation of the programme remains subject to satisfactory resolution of the Salam Typhoon price escalation negotiations. As at 7 May 2013, BAE Systems had purchased 17 million shares for £65m under the programme.

12+ month high today @445p

Half Yearly report

Financial key points
‑ Sales2 increased by 1%

‑ Underlying EBITA3 decreased by 6%. Deferred recognition of sales and profit relating to the formalisation of price escalation on the Salam Typhoon programme

‑ Underlying earnings4 per share decreased by 4%

‑ Order backlog2,6 increased to £43.1bn

‑ Non-UK and US order intake2 of £4.8bn in the period

‑ Interim dividend increased by 3% to 8.0p per share

‑ Operating business cash outflow7 of £815m

Ex-divi wed 23rd Oct (8p).

On watch list. Had a great year, but since August stuck in a range, twelve months high 470 ish end of September, recent low 430. Was hoping todays ex - divi date would push SP lower than it has to give a better entry. Sort of stuck in the middle bang on 50DMA. See what happens tomorrow may be worth a punt initial target 480.

Wee punt in @ 453.0 on the spreads Dec contract, may be premature this has been my banker for Xmas last five years. Tight stop.

Out at the open @ 355.0 + 2

Portsmouth "Will" now close, Just announced.

Stan - have you missed a word out (not)?

Waiting for the official BA. announcement, but :- BAE Systems shipyards: Shipbuilding 'to stop' at Portsmouth

BAE Systems plc - Naval sector restructuring

BAE Systems has reached agreement in principle with HM Government on measures to enable the implementation of a restructuring of its UK naval ships business.

The agreement will result in:
· Restructuring of the contract for the Queen Elizabeth Class Aircraft Carrier programme.
· Provision of additional shipbuilding work prior to the start of the Type 26 Global Combat Ships programme.
· Rationalisation of the UK naval ship business to match future capacity requirements.

In 2009, BAE Systems entered into a Terms of Business Agreement (ToBA) with the Ministry of Defence that provided an overarching framework for significant naval shipbuilding efficiency improvements in exchange for commitments to fund rationalisation and sustainment of capability in the sector. The agreements announced today, together with an anticipated contract for the design and manufacture of the Type 26 Global Combat Ships programme, will progressively replace that ToBA.

Queen Elizabeth Class Aircraft Carrier
BAE Systems, with the other participants in the Aircraft Carrier Alliance, has agreed changes to the Queen Elizabeth Class Aircraft Carrier contract. Under the revised terms, the contract will be amended to accommodate programme changes and activities previously excluded from the contract.

Under the new Target Cost contract the industrial participants' fee will move to a 50:50 risk share arrangement providing greater cost performance incentives. The maximum risk to the industrial participants will continue to be limited to the loss of their profit opportunity.

The revised contract reflects the increased maturity of the programme, with structural assembly of the first of class vessel now substantially complete.

Interim shipbuilding workload
A significant reduction in workload will follow the peak of activity on the Aircraft Carrier programme, the six Type 45 destroyers and two export contracts. The anticipated Type 26 programme will, in future years, address some of that workload reduction. In the interim period, a proposed contract for the manufacture of three Offshore Patrol Vessels, announced today, will provide additional capability for the Royal Navy and sustain key shipbuilding skills.

Restructuring of the Naval Shipbuilding business
Following detailed discussions about how best to sustain the long-term capability to deliver complex warships, BAE Systems has agreed with the UK Ministry of Defence that Glasgow would be the most effective location for the manufacture of the future Type 26 ships. Consequently, and subject to consultation with trade union representatives, the Company proposes to consolidate its shipbuilding operations in Glasgow with investments in facilities to create a world-class capability, positioning it to deliver an affordable Type 26 programme for the Royal Navy.

Under these proposals, shipbuilding operations at Portsmouth will cease in the second half of 2014. Subject to consultation, Lower Block 05 and Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft Carrier will be allocated to Glasgow.

The Company remains committed to continued investment in the Portsmouth area as the centre of its Maritime Services and high-end naval equipment and combat systems business.

Consultation will commence on a total employee reduction of 1,775 that is expected to result from these restructuring proposals, including 940 in Portsmouth in 2014 and 835 across Filton, Glasgow and Rosyth, progressively through to 2016.

The cost of the restructuring will be borne by the Ministry of Defence.

The implementation of these restructuring activities will sustain BAE Systems' capability to deliver complex warships for the Royal Navy and secure the employment of thousands of highly skilled employees across the UK.

BAE Systems slips ahead of possible news on UAE Eurofighter order

Company hopes for news of £6bn deal at Dubai air show next week, but no guarantee
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BAE Systems has slipped back ahead of next week's Dubai air show, when it hopes to hear news on a proposed £6bn Eurofighter deal with the United Arab Emirates.

The UAE, which is hosting the show, is deciding whether to buy the Eurofighter and Dassault Systems Rafale aircraft. The Rafale deal was said to be the most likely last year, but visits to the Gulf state by UK prime minister David Cameron and concerns about the terms put things back up in the air.

BAE shares are currently 5.2p lower at 449p, and JP Morgan Cazenove has repeated its underweight recommendation. The bank said:


In July this year BAE told investors that at the Dubai air show it hopes to be able to announce progress in securing a contract from the UAE for 60 Eurofighters and also unmanned aerial vehicles. We [have] argued that a UAE contract for Eurofighters and associated equipment would be worth around 45p per share for BAE, and that this was already discounted in the current price.



The bank laid out five possibilities for next week:


Scenario 1 (worst case) – contract awarded to a rival: Some French defence industry executives believe they still have a chance to secure the UAE fighter jet contract. We believe BAE is still the front runner but we cannot rule out the French or US being successful, though probably not at Dubai next week.

Scenario 2 – no announcements at all from the UAE regarding the procurement of fighter jets.

Scenario 3 – holding pattern: In November 2012 the UAE and UK governments released a statement saying they will "establish a defence industrial partnership that involves close collaboration around Typhoon." This was rightly seen as a positive development for the Eurofighter consortium, although there is no guarantee of a contract being secured. If the only outcome from Dubai next week is another statement along these lines, it would not be negative but probably a little disappointing.

Scenario 4 – a formal government to government deal between the UK and the UAE: This would a good outcome for BAE, we believe, as it would be a definite stepping stone to a final contract. In December 2005 the UK finalised such a deal with Saudi Arabia. BAE issued an RNS which said that "the Governments of Saudi Arabia and the UK have signed an Understanding Document, which is intended to establish a greater partnership in modernising the Saudi Arabian Armed Forces and developing close service-to-service contacts especially through joint training and exercises." We see a similar UAE-UK announcement as quite possible at Dubai.

Scenario 5 (best case) – an actual contract for 60 Eurofighters: This is less likely than scenario 4, in our view, but not impossible. We would not expect the deliveries to be before 2018 but BAE could benefit from a near- term prepayment on the contract.




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Posted by
Nick Fletcher
Friday 15 November 2013 12.35 GMT theguardian.com
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Back in long on the spreads @ 441.8 may yet be premature, hoping 440.0 will act as support. Tight stop, target 470.0

Not sure why this has bounced today, can't find any RNS assuming it's technical?

This probably helped :- U.S. Army Awards BAE Systems Key Role Supporting Missile Defense Programs

and

BAE set for export boost with latest Typhoon model

Well spotted, thanks skinny.

Looking worth a punt.

Just had that punt!

Have a buy limit waiting @ 431.