LONDON (Reuters) -BAE Systems, Britain’s biggest defence company, forecast more growth next year as the war in Ukraine boosts military spend, helping it post a “very strong” order book in 2022, including a 4.2 billion pound ($4.96 billion) ship contract.
The builder of combat ships, submarines and fighter jets, said it was on track to meet its guidance for underlying earnings per share to grow by 4% to 6% this year on a constant currency basis.
The strengthening dollar is a tailwind for BAE and it forecast EPS growth of 11% to 13% on an actual basis.
Margin expansion would continue in 2023, the group said.
“We see sales growth coming from all sectors and opportunities to further enhance the medium-term outlook as our customers address the elevated threat environment,” chief executive Charles Woodburn said in a statement on Tuesday.
Britain confirmed a long-planned order for type 26 anti-submarine warships earlier on Tuesday which is worth 4.2 billion pounds, said BAE.
($1 = 0.8472 pounds)
(Reporting by Sarah Young; editing by James Davey)
