Sees FY underlying earnings up 6-8% (Il Sole 24 Ore Radiocor) - London, 09 May - The UK aerospace and defence group BAE Systems said that it is trading in line with expectations.

"Trading so far this year has been in line with expectations.

Operational performance continues to be strong and our backlog and programme incumbencies underscore our confidence in our long-term value-creating model," according to the CEO, Charles Woodburn.

"Our global presence and diverse portfolio of products and services provide high visibility for top-line growth, margin expansion and cash generation in the coming years," he added.

The guidance for 2024 is for sales to rise 10-12% from 25.284 billion pounds in 2023, underlying EBIT to grow 11-13% from 2.682 billion and underlying EPS to rise 6-8% from 63.2 pence.

The 2024 free cash flow (FCF) is forecast to be above 1.3 billion pounds and the cumulative FCF for 2024-2026 is expected to be above 5 billion pounds, BAE said.

The company added that capital expenditure is expected to rise compared to 2023, with capital expenditure focused on maritime, munitions and its Swedish combat vehicle production capacity and capabilities.

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(RADIOCOR) 09-05-24 10:23:20 (0250) 5 NNNN