BAE Systems reiterates expectations for flat 2018 earnings

Defence group BAE Systems reiterated its expectations on Thursday for 2018 earnings to be flat on the year, as it said there were good prospects to add to its order backlog.

BAE said that negotiations with Saudi Arabia relating to the principal terms of plans to buy 48 Typhoon aircraft are progressing. Meanwhile, the company is one of two competitors in the running to win US amphibious combat vehicle contracts.

In Australia, the group has secured the 10-year Jindalee operational radar network upgrade programme contract and is expecting a decision by half-year on the preferred tenderer for the Commonwealth's nine-ship SEA 5000 Future Frigate programme.

In a statement that will be read out at its annual general meeting in Hampshire later, chief executive Charles Woodburn said: "We have a large order backlog and strong franchises with good prospects to further these positions in the coming months.

"The new organisation structure is now established to drive our strategic priorities to deliver both in year targets and to provide a solid foundation for medium term growth."

At 0825 BST, the shares were up 0.3% to 616p.