BAE warns US budget cuts to hit bottom line
BAE Systems posted a 3 percent rise in full-year profit on Thursday, in line in analysts'expectations, and said it expected continuing U.S. budget pressures to reduce earnings per share by 5-10 percent this year compared to 2013.
Europe's largest defense contractor posted 2013 underlying earnings before interest, tax and amortization (EBITA) of £1.925 billion ($3.22 billion), up from £1.862 billion in 2012.
(Read more: As West cuts, global defense industry balance shifts)
Sales increased by 2 percent to £18.2 billion, while underlying earnings per share rose 9 percent to 42 pence.
Analysts on average expected BAE to post flat full-year profits of £1.897 billion, on revenues of £18.8 billion, Thomson Reuters data showed.
(Read more: The Battle of 2014:A shrinking defense industry)
Earnings per share was on average expected to be 42.5 pence. It raised its full-year dividend by 3 percent to 20.1 pence per share and maintained its order backlog at 2012 levels at £42.7 billion.
BAE said on Wednesday it had finally agreed pricing with Saudi Arabia on their long-running Eurofighter Typhoon jet deal, after years of downgrading profit forecasts over the deal's delayed completion.
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