تويت
Feb. 19, 2014, 7:57 a.m.
اعتذر عن عدم الترجمة
LONDON—BAE Systems PLC said Wednesday that it had completed long-running talks about the repricing of a multibillion-dollar deal to sell Typhoon fighter jets to Saudi Arabia, providing a boost for the U.K.'s biggest defense company amid deep spending cuts in the U.S., its largest market.
BAE said the newly agreed pricing, which it didn't specify, would keep its 2013 results broadly in line with previous guidance for double-digit growth in underlying earnings for the full year. The company is to report results Thursday.
The agreement brings to an end the repricing negotiations with Saudi Arabia on a contract agreed to in 2007 for 72 Eurofighter Typhoon jets. At the time, the deal was worth about £4.5 billion ($7.5 billion), according to industry research.
BAE expects the pact to trigger a follow-up order for 48 more Typhoon jets by the end of 2014 or in 2015.
Christophe Menard , an analyst at Kepler Cheuvreux, said the agreement lifted "one of the long-lasting concerns on the stock" which might now lead to an acceleratiion of the company's share-buyback program. BAE's shares rose more than 3% in early London trading but were up 0.9% to 441 pence at midday.
BAE faces stiff competition in export markets and needed the Saudi business to help offset cuts in military spending in the U.S. and Europe.
The maker of Challenger tanks and aircraft carriers is the largest foreign supplier to the Pentagon, which accounts for 39% of its sales, topping the U.K., which generates 33% of total revenue. Saudi Arabia and Australia account for 13% and 7% respectively of total revenue.
"This is an equitable outcome for all parties," said BAE Chief Executive Ian King . "I am pleased that we have been able to conclude this negotiation which builds on our long-standing relationship with this much-valued customer."
The Saudi order is the only major contract secured for the Eurofighter planes outside Europe. The Eurofighter consortium includes Airbus Group EADSY -0.88% NV and Italy's Finmeccanica SpA.
The Typhoon has struggled to win export orders beyond the European countries that funded its development. Its exit from a contest to sell jets to the United Arab Emirates in December was a blow for a multibillion-dollar program that could be forced to wind down by 2018 for lack of new business.
اعتذر عن عدم الترجمة
LONDON—BAE Systems PLC said Wednesday that it had completed long-running talks about the repricing of a multibillion-dollar deal to sell Typhoon fighter jets to Saudi Arabia, providing a boost for the U.K.'s biggest defense company amid deep spending cuts in the U.S., its largest market.
BAE said the newly agreed pricing, which it didn't specify, would keep its 2013 results broadly in line with previous guidance for double-digit growth in underlying earnings for the full year. The company is to report results Thursday.
The agreement brings to an end the repricing negotiations with Saudi Arabia on a contract agreed to in 2007 for 72 Eurofighter Typhoon jets. At the time, the deal was worth about £4.5 billion ($7.5 billion), according to industry research.
BAE expects the pact to trigger a follow-up order for 48 more Typhoon jets by the end of 2014 or in 2015.
Christophe Menard , an analyst at Kepler Cheuvreux, said the agreement lifted "one of the long-lasting concerns on the stock" which might now lead to an acceleratiion of the company's share-buyback program. BAE's shares rose more than 3% in early London trading but were up 0.9% to 441 pence at midday.
BAE faces stiff competition in export markets and needed the Saudi business to help offset cuts in military spending in the U.S. and Europe.
The maker of Challenger tanks and aircraft carriers is the largest foreign supplier to the Pentagon, which accounts for 39% of its sales, topping the U.K., which generates 33% of total revenue. Saudi Arabia and Australia account for 13% and 7% respectively of total revenue.
"This is an equitable outcome for all parties," said BAE Chief Executive Ian King . "I am pleased that we have been able to conclude this negotiation which builds on our long-standing relationship with this much-valued customer."
The Saudi order is the only major contract secured for the Eurofighter planes outside Europe. The Eurofighter consortium includes Airbus Group EADSY -0.88% NV and Italy's Finmeccanica SpA.
The Typhoon has struggled to win export orders beyond the European countries that funded its development. Its exit from a contest to sell jets to the United Arab Emirates in December was a blow for a multibillion-dollar program that could be forced to wind down by 2018 for lack of new business.
