BAE Systems expects the Covid-19 shock to strike in the next three months


The company, which owns a land combat vehicle operation in Telford, said it is continuing to assess the situation and will inform shareholders of the possibility of expecting a dividend in July when the interim results are released.

The defense company will also make a decision on how much to pay its directors at this point. Many other London-listed companies have announced that their management and boards of directors will cut their wages during the crisis.

“At the start of the second quarter, we are seeing more disruption,” said the company.

He added: “In the first quarter of 2020, the pandemic had no significant impact on the group’s financial performance”.

BAE Systems recently won contracts to supply self-propelled bus and missile defense systems and to repair US ships.

Last year, it was also announced that hundreds of new jobs could be created at the Telford site under a £ 2.8 billion contract to supply the British military with more than 500 new jobs. armored combat vehicles.

The Boxer armored vehicles are expected to be built at Hadley Park by a joint venture between two defense companies – Rheinmetall and BAE Systems, known as RBSL.

BAE said the company’s annual meeting of shareholders will not be held in person because groups of more than two people cannot meet. Instead, shareholders can vote online and by mail.

BAE said: “The company is in a strong position with a large order book, consisting mainly of long-term government contracts with a large international clientele. “

Many employees worked from home during the pandemic and the sites reduced their operational levels, BAE said.

He said plans to acquire Collins Aerospace’s military global positioning systems business and Raytheon’s airborne tactical radio business will continue in the coming months. Funding is already in place.

BAE said: “While the Covid-19 pandemic will have an impact on our previous directions for 2020, at this stage it is not possible to predict the duration of the disruption or its impact on the 2020 outcome. new update will be provided if applicable. “


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