BAE Systems Launches $1.8 Billion Buyback, 1st Half Pretax Profit Fell on Higher Costs

By Anthony O. Goriainoff

BAE Systems PLC said Thursday that it was launching a three-year share buyback of up to 1.5 billion pounds ($1.82 billion) as it reported a fall in pretax profit for the first half of 2022 after booking higher costs.

The U.K. defense-and-aerospace group said pretax profit was GBP779 million compared with GBP1.15 billion for the first half of 2021.

Underlying earnings per share--the company's preferred metric, which strips out exceptional and other one-off items--rose to 24.5 pence a share from 21.9 pence a share in the year-prior period.

The company's order intake in the period was GBP18 billion compared with GBP10.58 billion, last year, while its backlog totaled GBP52.7 billion.

Revenue for the period was GBP9.74 billion compared with GBP9.34 billion the year before.

Underlying earnings before interest and taxes rose 4.4% to GBP1.11 billion, the company said.

For 2022 as a whole, the board guided for sales growth in the 2% to 4% range, underlying EBIT to rise in the 4% to 6% range, and underlying EPS growth to be in the 4% to 6% range.

The board declared an interim dividend of 10.4 pence a share, a 5% rise on the year before.

"We see further opportunities to enhance the medium- and long‑term outlook as our customers commit to increased defense spending to address the elevated threat environment," BAE said.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

July 28, 2022 02:57 ET (06:57 GMT)

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