Strong Results Against Challenging Backdrop
BAE Systems announced its annual financial results for 2020 on 25 February.
Charles Woodburn, Chief Executive, commented, “Thanks to the outstanding efforts of our employees and close cooperation with our customers, suppliers and trades unions, we have delivered a strong set of results against a challenging backdrop of the global pandemic. Throughout 2020, we focused on keeping our people safe and supporting our communities, whilst continuing to deliver for our customers […] In 2021, we will continue to drive operational performance, progress our sustainability agenda and invest in high-end discriminating technologies to meet our customers’ priorities, which will ensure we are well positioned to grow the business and contribute to the economic prosperity of the countries in which we operate.”
The results in brief: Revenues £19,277 million (up from £18,305 million in 2019); operating profit £1,930 million (1,899 million); order intake £20,915 million (£18,447 million); order backlog $45.2 billion (£45.4 billion)
Looking ahead, and with a predicted exchange rate of £1:US$1.35, the company expects sales to grow 3-5% in 2021, with growth running 5-7% excluding the impact of foreign exchange. Continued weakness in commercial aerospace revenues is expected to be at least partially offset by growth in Air and Electronic Systems and improved performance in Platforms & Services (US), continued expansion in Applied Intelligence, and a full year of contribution from the acquisitions in Electronic Systems.