BAE Systems Puts Dividend on Hold; Sees Pandemic Hurting 2020 Performance

   By Adria Calatayud 
 

BAE Systems PLC said Friday that it has deferred a decision on its declared final dividend for 2019 until July as it warned that the coronavirus pandemic is expected to hurt its previous guidance for 2020.

The U.K. defense group said it isn't possible to predict either the duration of the disruption or its impact on the 2020 outturn at this stage. The virus hasn't had a material impact on the company's first-quarter performance, but BAE said it is experiencing more significant disruptions at the start of the second quarter.

The company said its liquidity is strong with significant gross cash and access to a 2 billion-pound ($2.48 billion) revolving credit line committed to April 2024 along with other short- and long-term debt options. BAE said it is also discussing funding profiles with key customers to ensure its supply chain remains strong.

BAE said it still expects to close its proposed acquisitions of the Collins Aerospace Military Global Positioning System business and Raytheon Co.'s Airborne Tactical Radios business in the coming months.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

April 03, 2020 02:34 ET (06:34 GMT)

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