(Bloomberg) -- BAE Systems Plc, Europe's biggest defense contractor, stuck to its full-year earnings forecast as operations in the U.S. expanded.
Underlying earnings, adjusted for a tax-provision release and currency effects, will rise 5 percent to 10 percent from the 2015 figure of 36.6 pence a share, the London-based manufacturer said Thursday in a statement. Deliveries this year have included a sixth ship under a U.S. contract to build eight commercial vessels, and the company began construction this week on a new submarine model for the U.K., it said.
“In the U.S., the defense market outlook remains positive and the production ramp up on a number of the group's long term programs is progressing to plan,” while in the U.K. “we have made good progress” on an order revamp under a defense-strategy review, BAE said.
The company's growth hinges on adding to exports as the U.K. seeks a new global role following the country's vote in June to leave the European Union. The manufacturer is working on a new warship for Britain's Royal Navy, as well as a successor to the country's submarine-based Trident nuclear missile system. Those projects will be overseen by Chief Operating Officer Charles Woodburn, who is now in charge of U.K. programs and eventually slated to succeed Chief Executive Officer Ian King.
BAE rose as much as 0.8 percent and was trading up 0.4 percent at 540 pence as of 8:55 a.m. in London. The stock has gained 8.1 percent this year, valuing the company at 17.1 billion pounds ($21.8 billion).
To contact the reporter on this story: Tom Lavell in Frankfurt at tlavell@bloomberg.net.
To contact the editor responsible for this story: Chris Reiter at creiter2@bloomberg.net.
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