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.

Triggered.

You know it makes sense! :-)

Hope so skinny, pays your money takes your chance :O)

UAE pulls out of Eurofighter deal

Aircraft manufacturer BAE Systems says the United Arab Emirates has pulled out of a deal to buy Eurofighter aircraft.

The Gulf state had been in talks with the company and the UK government to buy 60 Typhoon jets.

The union convenor at the firm's Warton factory in Lancashire said it was "very disappointing news to get before Christmas".

Stopped out at the open -13

Chris - annoying!

I closed on Wednesday @433 +7.5 and couldn't believe how it opened and climbed yesterday!

JP Morgan Cazenove Underweight 425.45 380.00 355.00 Reiterates

skinny - Way it goes, never saw that coming.

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Shares in BAE Systems slump by nearly 5% after Middle East deals setbacks
By DAILY MAIL CITY & FINANCE
PUBLISHED: 22:05, 20 December 2013 | UPDATED: 22:05, 20 December 2013
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Shares in defence giant BAE Systems slumped by almost 5 per cent yesterday after investors took fright at news that a potential £6billion contract to supply Typhoon warplanes to the United Arab Emirates was off.
The company announced to the stock market after trading closed on Thursday that the UAE had ‘elected not to proceed’ with the purchase of 60 of the Eurofighter jets and other security capabilities.
It also warned that protracted talks with Saudi Arabia over the pricing of 72 Typhoons, of which only 28 have so far been delivered, have stalled.
Negative news: BAE said talks with Saudi Arabia over the pricing of 72 Typhoons have stalled
Negative news: BAE said talks with Saudi Arabia over the pricing of 72 Typhoons have stalled
BAE (down 19.9p at 422.1p) said that if the ‘Salaam’ negotiations go past the end of its financial year, it could strip 6 to 7p off its earnings – the equivalent of around £225million.
Analyst Rob Stallard, of RBC Capital Markets, said: ‘The combined news is negative for BAE as we think some investors expected UK plc to deliver a UAE contract, especially after David Cameron visited for the Dubai Air Show.

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Shares in BAE Systems slide after talks to build jets for United Arab Emirates fail
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‘But Salaam could potentially prove the more worrying piece of news as its continued delay may spook investors into worrying that negotiations are not achieving any real progress.’
As defence budgets in its core UK and US markets come under pressure, BAE is being forced to look overseas to boost export orders.
It was pipped to the post for a 126-aircraft deal in India by French rival Dassault with its Rafale jet fighter. BAE was also hit yesterday by news that Canada had scrapped a £1.15billion plan to buy 108 armoured vehicles.
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BEN GRIFFITHS: Who will buy BAE Systems' Eurofighter now that UAE deal fails?
By BEN GRIFFITHS
PUBLISHED: 22:02, 20 December 2013 | UPDATED: 22:15, 20 December 2013
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Just how serious is the failure of talks to sell 60 Eurofighter Typhoon jets to the United Arab Emirates for up to $10billion for manufacturer BAE Systems?
Some defence industry analysts believe that despite being shot down in flames, the deal could one day be resurrected, although potentially with a revised requirement for fewer aircraft if the political climate in the Middle East remains subdued.
Typhoon is Britain’s biggest industrial programme. The RAF is taking only 160 aircraft, so BAE and its project partners, EADS and Finmeccanica, must make more overseas sales.
Flagship jet fighter: The UAE Typhoon deal would have been a huge boost to BAE Systems
Flagship jet fighter: The UAE Typhoon deal would have been a huge boost to BAE Systems
Having relied on Ministry of Defence procurement for decades, by 2016 international sales are forecast to be half the business at the company’s Military Air & Information division, making connections with foreign governments vital to the firm’s prosperity.
Growth for BAE’s military aircraft operations depends on the business continuing to deliver for existing customers such as Saudi Arabia, while also winning new orders in places such as Malaysia.

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Shares in BAE Systems slide after talks to build jets for United Arab Emirates fail
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Now the UAE deal is on ice, the implications for BAE are fairly serious. Decent exports both prolong the life of the programme along with thousands of highly skilled jobs as well as reducing the ultimate cost of developing and making the aircraft for the partner nations behind the Eurofighter.
Nevertheless, while the UAE Typhoon deal would have been a huge boost to BAE the company had not factored the potential sales into its financial forecasts. The same cannot be said of the protracted pricing negotiations with Saudi Arabia over a contract to deliver 72 Typhoons.
BAE itself admitted it will impact the group’s 2013 profits if not concluded quickly. This setback could shave 6 to 7p from annual earnings – or around a fifth of the previous after-tax profits – equivalent to some £225million.
Unlike the UAE deal, future consensus earnings can be affected by the ‘Salaam’ talks. So far 28 of the warplanes have been delivered to the Saudis and talks over the price to be paid for the aircraft have been rumbling on for more than two years. This is the second time the group has had to tweak its earnings outlook due to uncertainty about the deal.
For investors the UAE failure and ongoing Saudi Arabia negotiations are cause for concern because they raise questions about future growth potential. City analysts yesterday warned that the contract was one of the largest potential orders for Typhoon.
Many investors expected Britain to deliver the deal for the Eurofighter consortium, especially following an intervention by David Cameron at the recent Dubai Air Show. Yet Salaam could be the most worrying piece of news for investors in BAE Systems.
The company must now convince the market that negotiations over the Saudi deal are making progress. Meanwhile, BAE must look to other potential markets for its flagship jet fighter. The question is simply who will buy it?
Pressing on
Despite the UAE setback for Typhoon, defence trade organisation ADS Group has identified 13 priority markets for UK defence exports as well as the US, a key BAE Systems customer.
The group’s International Defence Market Strategy is designed to help manufacturers focus on growth based on countries’ relative market attractiveness, accessibility for UK companies and the size of their defence spending.
It’s no coincidence that the UAE features on that list as well as Saudi Arabia and Malaysia. But also included are Australia, Brazil, India, Indonesia, Japan, Oman, Poland, Qatar, South Korea and Turkey.
Britain is already the largest exporter of defence equipment and services in Europe. During 2012 defence exports surged by 62 per cent to £8.8billion – that’s around 40 per cent of the £22billion the sector generates for the UK economy each year.
Details of a strategic plan for the new Defence Growth Partnership between government and industry are expected to be released in July at the Farnborough Air Show.
As the sibling Aerospace Growth Partnership has already proved, the relationship between ministers and business can make the difference to key customers when it comes to securing orders.
Emerging markets in particular want to see commitment to inward investment in their countries before they will sign up to purchase expensive war-fighting and security equipment.
For companies looking to enter these lucrative markets, the help of UK Trade & Investment, ADS and other specialist organisations could tip the balance. Next year is shaping up to be a crucial year for the UK’s defence sector.
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BAE Systems - Agreement on Salam price escalation



19 February 2014



The Understanding Document signed by the Governments of the United Kingdom (UKG) and the Kingdom of Saudi Arabia (KSA) in 2005 included provision for the Typhoon aircraft acquisition by the KSA to be at 2005 economic conditions. Both Governments have now agreed price escalation terms relating to the Typhoon aircraft under the Salam programme and these have been reflected in contractual arrangements between the UKG and BAE Systems. The terms of the agreement are broadly consistent with the Group's prior trading outlook for 2013.

Cash settlement is expected to follow this pricing agreement, commencing in the early part of 2014.

Ian King, Chief Executive, BAE Systems, said: "This is an equitable outcome for all parties, I am pleased that we have been able to conclude this negotiation which builds on our long standing relationship with this much valued customer".

Final Results

Financial key points
- Sales3 increased by 2% to £18.2bn

- Underlying EBITA4 increased by 3% to £1.9bn and underlying earnings5 per share increased by 9% to 42.0p
- Equitable conclusion reached on price escalation negotiations with the Kingdom of Saudi Arabia

- Order backlog3,7 of £42.7bn maintained at 2012 levels with non-UK/US order intake3 of £9.3bn

- Robust, investment grade balance sheet, with net debt9 of £699m at year end

- Non-cash goodwill impairment of £865m in US businesses, due to increased weighted average cost of capital and taking into account lower US defence spending

- Full year dividend increased by 3% to 20.1p per share

- £850m returned to shareholders in 2013, including £212m on the share repurchase programme

Ian King, BAE Systems plc Chief Executive, said: "Overall, the Group delivered a solid performance in 2013, against the background of reduced government spending and challenging market conditions. A proactive focus on costs and enhanced competitiveness protected our margins across the majority of the business and we secured further contract wins in the US, Saudi Arabia and internationally. We have started 2014 with good momentum with a settlement on Salam pricing, US budgets in place and a well-defined UK Maritime sector plan. Budget pressures in some of the Group's larger markets are expected to prevail but BAE Systems has a broad-based portfolio. Our strong order backlog and robust balance sheet provide a solid basis for growth over the medium term."

Outlook
Following last year's non-recurring benefit from the Salam price escalation settlement, together with continuing US budget pressures, the Group's reported earnings5 per share is expected to reduce by approximately 5% to 10% compared to 2013.
Reporting segments
Electronic Systems: Sales3, in US dollars, in 2014 are expected to be similar to those in 2013 with margins at the high end of a 12% to 14% range.

Cyber & Intelligence: Sales3 in 2014 are expected to be broadly in line with those in 2013 with margins in an improved 8% to 10% range.

Platforms & Services (US): In 2014, sales3 in the Land & Armaments business (adjusted for the transfer out of the UK Munitions business into Platforms & Services (UK)) are expected to be some 20% to 25% lower with margins of around 9%. Sales3 in the Support Solutions business are expected to be a little lower in 2014 with mid-single digit margins.

Platforms & Services (UK): Following the trading in 2013 of the price escalation on the Salam Typhoon contract, and excluding the transfer of the UK Munitions business, sales3 are expected to reduce by around 5% with margins expected to return to a 10% to 12% range.

Platforms & Services (International): Sales3 are expected to be similar to 2013 with margins expected to be in a 10% to 12% range.

Barclays Capital Underweight 404.95 400.40 380.00 380.00 Reiterates

Cantor Fitzgerald Buy 411.40 400.40 490.00 460.00 Retains

Half Yearly Report

FINANCIAL KEY POINTS
- The second half bias on Typhoon aircraft deliveries together with the expected lower volumes at Land & Armaments contributed to a 10% decrease in sales2 (6% at constant currency)

- Good margin performance in most businesses, whilst reduced volumes decreased underlying EBITA3 by 7% (4% at constant currency)

- The benefits of the share repurchase programme and lower tax rate largely offset the lower underlying EBITA3 resulting in underlying earnings4 per share of 17.7p

- Large order backlog2,6 of £39.7bn after exchange translation of £0.4bn

- Interim dividend increased by 2% to 8.2p per share

- £618m returned to shareholders in the period, including £235m on the share repurchase programme


Acquisition

BAE Systems announces it has entered into an agreement for the proposed bolt-on acquisition of Signal Innovations Group, Inc. (SIG), a provider of imaging technologies and analytics to the US intelligence and defence communities.

President of BAE Systems Inc. Intelligence and Security, DeEtte Gray said: "Combining SIG's technologies with our existing intelligence tools and analysis capabilities will enhance our customers' ability to analyse tactical and strategic intelligence from around the globe. Together, we also have the potential to leverage our capabilities and bring this technology to a number of innovative commercial applications in an affordable way."

The proposed acquisition is conditional upon receiving certain regulatory approvals. It is anticipated the proposed acquisition will be completed during the third quarter of 2014.