RNS Number : 1322Y
BAE SYSTEMS PLC
27 August 2009
BAE Systems - FMTV re-compete
BAE Systems has been notified by the US Department of Defense (DoD) that it has
not been awarded a follow-on contract for production of vehicles under the
Family of Medium Tactical Vehicles programme.
The full implications of this decision cannot be assessed until consultations
with the DoD have been completed regarding their intentions to transition the
programme to the new arrangements.
The Company's current contract will see production of FMTV vehicles through to
the fourth quarter of 2010.
The Company's financial planning assumptions anticipate FMTV sales in each of
2009 and 2010 of approximately $2bn. It is not anticipated that this planned
activity will be impacted by this decision. The Company had planned for FMTV
sales to reduce to less than $1bn per annum from 2011 onwards.
The Company believes its proposal represented further improved value for the
customer and at the same time served the best interests of shareholders. BAE
Systems' bid for this next phase of the FMTV programme was based on the
experience of producing approx 50,000 of these high quality military
specification vehicles over a number of years.
BAE Systems plc
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