BAE hoping for growth in 2003
Aerospace and defence group BAE Systems, which has slashed hundreds of jobs since September 11, today said it hoped to start growing again in 2003.
BAE has suffered following the terror attacks in the United States, as demand from the commercial aviation industry fell away.
The group cut 1,700 jobs when it pulled the plug on its regional jets business last autumn and today reported a sharp drop in bottom-line profits, from £179m (€293m) in 2000 to £70m (€114m), after a number of restructuring charges.
However, sales improved after a stronger showing in its defence business, from £12.19bn (€20bn) to £13.14bn (€21,5bn), while operating profits were up from £189m (€309m) to £423m (€692m).
BAE said it did not expect to see growth this year, commenting: ‘‘A number of challenges, most notably the events of September 11, have resulted in a sharp deterioration in the commercial aircraft market.
‘‘This will have a significant impact on our civil aerospace activities and will delay the resumption of growth in the performance of the company in 2002 that we previously envisaged.’’
However, BAE was optimistic that in 2003, an ‘‘improved performance from defence activities and a maintained position at Airbus can be expected to result in a resumption of growth’’.
It added: ‘‘Looking further ahead, the existing order book will deliver good growth in defence activity while prospects for Airbus remain excellent over the medium term.’’
