BAE Systems shares struggle after sales update

Shares in aerospace and defence giant BAE Systems (LON:BA.) have fallen by 6.36% to 472.30p (as of 13:25 GMT) after the firm’s revenues dropped by 2.3% for the 2018 full year. However, operating profits rose by 13.1% despite adverse foreign exchange movements. The group said that the decline in sales was linked to the expected reduction in Typhoon production activity, but had been partly counteracted by improvements in the firm’s US operations.

Chief executive Charles Woodburn said: “The Group made good progress in strengthening the outlook and geographic base of the business, with a number of significant contract wins. The defence order backlog is now at a record high with visibility on many of our key programmes through the next decade. Delivering a strong operational performance and continued investment will enable us to meet our growth expectations and underpin the long term“.