BAE Systems To Axe 371 Jobs In Typhoon Jet Production Slowdown
MoD awards BAE Systems a £112m contract extension to continue supporting the RAF's Typhoons: https://t.co/Q0DgSQiVLIpic.twitter.com/BejDoA0hHj
— Forces TV (@Forces_TV) January 20, 2015"In the short term, action to extend the production life of Typhoon aircraft by reducing the current production rate and a charge to impair the carrying value of the Williamstown shipyard in Australia will impact the group's 2015 results."
While incoming orders have disappointed, the group said it expected talks to see additional Typhoon contract wins "in the months ahead" and forecasts good sales growth in 2015.
It added that "defence and security remain the first priority of governments in all of our markets".
"In the UK, budget commitments to defence spending provide greater certainty and stability ahead of the forthcoming 2015 Strategic Defence and Security Review," it said.
BAE, which employs more than 80,000 people worldwide, reported a £1.5 billion drop in sales to £16.6 billion for 2014 in February and said underlying earnings fell by 11% to £1.7 billion.
In May, it announced it would retain both of its shipyards in Glasgow and make its most significant investment in them for decades.
In its long-awaited decision on the future of the shipyards, it said it would invest £100 million in improving and expanding manufacturing facilities at the Govan and Scotstoun yards.
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