Delays and cost overruns cut half-year sales and profits at the UK's largest aerospace company, BAE Systems, as French rival Thales saw defence sales rise.
BAE sales in the first half of this year fell 9% to £5.7 billion ($8.9 billion), forcing the company £63 million into the red. Finance director George Rose blamed poor management at the company's shipyards. BAE also saw losses from its Astrium satellite joint venture with EADS, which it is selling to EADS by year-end, and took £30 million in one-off costs from avionics division reorganisation.
BAE expects sales growth next year, but says this year they will be flat at £13.1 billion. Longer term, chief executive Mike Turner is pinning his hopes on BAE Systems North America's access to US defence spending. The division is set to "meet or better its 2002 targets", he says. More US take-overs are likely.
Thales posted €88 million ($87 million) net first-half income. Consolidated sales rose 15% to €4.9 billion, a corrected rise of 9.5%.There was growth of 21% in defence sales, while aerospace sales fell 7% on a like-for-like basis. Although orders were down at €4.4 billion against €4.7 billion for the first half of 2001, Thales says 2002 orders "should be close" to last year's record €11 billion.
Source: Flight International
