UK's BAE upgrades forecasts as threat environment drives orders
BAE's order book has been ticking up since Russia invaded Ukraine in 2022. This year, U.S. President Donald Trump's call for European countries to become more self-sufficient in defence prompted most NATO countries to pledge to hike military budgets.
BAE, which makes combat vehicles, submarines, drones and other kit, said on Wednesday it expected its annual underlying earnings (EBIT) to rise 9% to 11% on last year's result, higher than the 8% to 10% growth it had previously forecast.
That came after earnings jumped 13% in the first six months of the year to 1.55 billion pounds ($2.07 billion), beating a consensus forecast of 1.52 billion pounds.
The result was boosted by a contract win in the U.S. for a space-based missile tracking capability, which could lead to further work as the country develops its Golden Dome defence shield, as well as progress made on the GCAP project to develop a new fighter jet with Italy and Japan.
Shares in BAE traded down 2% in early deals. The stock is up 60% so far this year, outperforming Britain's bluechip index (.FTSE), opens new tab which is 10% higher.
"Strength was expected," Bernstein analysts said.
BAE, whose biggest markets are the U.S., Britain and Saudi Arabia, said it was well-placed to win more work from across Europe as well as the Middle East.
The company is set to receive a new order for Eurofighter Typhoon military jets after an agreement between Turkey and Britain was signed earlier in July. Orders from Saudi Arabia and Qatar could also be on the cards.
"There's definitely interest," CEO Charles Woodburn told reporters. "But it's hard to put a timeframe on when those potential next buys might come through."
He declined to comment on whether BAE was in talks with Boeing and Sweden's Saab about teaming up on a future replacement for Britain's Hawk trainer jet.
($1 = 0.7492 pounds)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
13 minutes ago
- The Independent
Food earmarked for millions of people still languishes in warehouses after Trump shuttered USAID
Food aid groups that partner with the U.S. Agency for International Development to assist in providing critical nutrition for millions around the world have had to watch cases of food go to waste as the Trump administration dismantled USAID. In Georgia, Mana Nutrition, a company that creates ready-to-use therapeutic food, is waiting for someone to pick up 400,000 cases of its nutritional supplement to be shipped worldwide. The food could help an estimated 60 million people, but chaos with USAID has disrupted coordination, the company told the Washington Post. The company is planning to destroy approximately 585 cases of its peanut paste this month because it became too dated to ship while waiting for a new government contract that never happened. The owner of Mana Nutrition told The Post that some of it could have been added to previous shipments, but wasn't. But other companies or organizations that have or had contracts with the government to supply aid have faced similar issues in recent months. In July, approximately 500 metric tons of food aid, specifically high-energy biscuits meant for children in Afghanistan and Pakistan, expired while being stored in warehouses in Dubai. While the administration assured people that the small percentage of food aid wasted would not impact future shipments, some have raised concerns about the pattern that has been highlighted due to the dismantling of USAID. Last month, the company Edesia Nutrition waited for someone to pick up more than 100,000 boxes of nutritional aid that had sat in a warehouse in Rhode Island. After sounding the alarm, the shipments were finally picked up only after a Rhode Island retailer teamed up with the company. In May, several people familiar with USAID told Reuters that more than 60,000 metric tons of food, sourced from American farmers and manufacturers, was set to expired in warehouses by July. That concerned enough people that the Office of Inspector General said it would open an investigation into food aid in warehouses. It's unclear if that aid was eventually shipped. The Trump administration has sought to axe USAID by revoking federal funding and firing most of its staff. President Donald Trump and his allies have characterized USAID as an unnecessary agency filled with 'waste, fraud, and abuse.' USAID, which was established in the 1960s, was one of the world's leading distributors of food and aid. Partnering with other companies, USAID provided humanitarian assistance, medical necessities, education, and more to people living in poverty, war-torn countries, and disaster-impacted communities. A spokesperson for the State Department told the Post that it is 'constantly assessing global humanitarian needs and expects to allocate additional resources to address those needs in line with U.S. interests.'
Daily Mail
13 minutes ago
- Daily Mail
The Hamptons' 'poor neighbor' becomes a real estate hotbed of multimillion-dollar bidding wars
The Hamptons are out and East Coasters are moving to its cooler, quieter, slightly 'poorer neighbor' - the North Fork. What was once slow paced farm towns has become the new go-to for those who wish to make a home for themselves on Long Island, even if just for the summer. Realtor Donald Brennan has been a homeowner and resident on the North Fork for 22 years and recently his real estate firm opened up an office there. He told Daily Mail he's seen major changes in the area and that's in part due to how crowded the Hamptons on the South Fork has gotten. Families, friends, and retirees from New York City have been traveling down to the Hamptons - just two to three hours away - for generations. Naturally, as it became more and more popular over time, he said the traffic between New York City and the coastal getaway has become non-stop and the once quiet enclave is now polluted with traffic, parties, and back to back beach houses, leaving little room for new development. He said the North Fork, which mainly used to be farmland, has been Long Island's best kept secret for years. He'd always thought of it as an arm of Brooklyn. 'There's a really strong connection to Brooklyn as a feeder market.' he told the Daily Mail. Long Island splits into a 'fork' at the end, creating the appropriately named North and South Forks with the Hamptons located on the South Fork New Yorkers are now making the move to North Fork in favor of cheaper prices and a quieter life. This 4 bed 2 bath home is listed with Engel & Volkers for $1.075 million The land in the North Fork allows for more spacious builds and beachfront properties. This 6 bed 7 bath home is listed with Engel & Volkers for $3.6 million As a long-time Brooklyn resident himself, he noticed that many people preferred the quiet spaciousness of North Fork to the bustling community of the Hamptons on the South Fork. 'Its current environment maybe is not as relaxing as it was 10, 20, 30 years ago,' Brennan said. In many ways the North Fork offers the nostalgic feel of the Hamptons from decades prior. 'Certainly the North Fork is going to be an experience that you would maybe have enjoyed 20 or 30 years ago on the South Fork,' said Brennan. 'Much quieter, much less traffic on the road,' he added. Even people who have summered in Montauk or the Hamptons for years are packing up and trading it for Mattituck in favor of lower prices and sprawling landscapes, he said. 'Now we see more of those, either as new buyers or people exiting the South Fork looking for homes on the North Fork,' he said. Brennan said there's more land, more space for beachfront properties, and more affordable options for families, residents, and retirees. Donald Brennan (pictured) has resided on the North Fork for over 20 years and now operates his real estate firm there According to Brennan cottage and bungalow-style homes are most common on the North Fork, but new builds are bringing diverse architecture. This 4 bed 2 bath home is listed with Engel & Volkers for $1.3 million And the numbers don't lie. According to Engel & Volkers, sales are up significantly on the North Fork, even in just the last year. Single-family home sales are up 17 percent in comparison to 2024. On top of that, the average sales price has skyrocketed to $1.168 million, an 8 percent increase since 2024. And according to recent reports, those homes aren't staying on the market for long. Todd Bourgard, the CEO of Douglas Elliman's Long Island, the Hamptons, and North Fork locations, said that his agents are quickly adapting to these quick sales and bidding wars. 'North Fork is now, and always has been, a beautiful place to live,' Bourgard told The New York Post. 'People are discovering it more and more every single day. We're certainly seeing the prices going up, because, like everywhere else, it lacks inventory.' Brennan said there really is no average homebuyer on the North Fork. People seem to be coming in masses regardless of age. Most are looking for single family homes with four or more bedrooms, swimming pools, and close proximity to the bay. According to Brennan the biggest issue with the rush of new residents is their desire to change the cohesive landscape of North Fork towns like Mattituck or Southold with populations of 4,200 and 6,600 respectively. Because there are so many land-buying opportunities and less-expensive homes that have been around for decades, affluent families are using their means to construct new, modern buildings. The popularity of the South Fork has caused new builds to be difficult and beach front space to be limited. This home on the North Fork is listed with Engel & Volkers for $1.4 million Brennan said good restaurants and shops have opened in the area over the last decade close to the beautiful beaches. Stairs lead to a beautiful beach on the North Fork of Long Island Orient Point Lighthouse is seen above. Orient is the eastern-most town on Long Island's picturesque North Fork He noted in some instances you can tell who's new to the area just by their architecture style. 'It's a little bit easier to see affluence,' he said. 'Those who've been there for a long time, and live in these more humble homes that are, you know, bungalows, or cottages are now maybe sitting side by side with 7,000 square foot modern glass boxes.' 'I think it's jarring for some people,' he said. But he certainly sees the appeal. 'There's really almost no traffic to speak of through the summer months. Some very good restaurants that have appeared over the last decade or so,' he said. 'So it's a little more relaxed, quieter existence than what most people may be experiencing today on the South Fork.'
The Sun
13 minutes ago
- The Sun
Hidden impact of UK's shoplifting epidemic revealed as crime wave costs every household £150 a year through price hikes
BRITAIN'S shoplifting epidemic is pushing the UK's retail sector into a 'vicious cycle', with rampant theft fuelling out-of-control inflation. The Sun on Sunday can reveal that the crime wave is costing households almost £147 a year as stores hike prices to recoup their losses and pay for extra security measures. 7 Britain's shoplifting epidemic is pushing the UK's retail sector into a 'vicious cycle', with rampant theft fuelling out-of-control inflation Credit: Getty 7 A looter is captured on shops' CCTV 7 A shoplifter is pictured in a store Credit: Getty 7 A crook pockets stolen items before leaving this shop Credit: Darren Fletcher With inflation jumping to a worrying 3.6 per cent this week — and with Bank of England Governor Andrew Bailey under pressure to slash interest rates to stimulate growth — experts warn that shop theft is pushing inflation ever higher. Economist Dr Kamran Mahroof, associate professor at the University of Bradford, said: 'We are stuck in a vicious circle, with high prices provoking people to steal at the same time as shoplifting forces stores to raise the cost of their goods, exacerbating inflation. Billions of pounds worth of stock is being stolen, but it doesn't stop there. 'Security tags are being put on pretty much everything nowadays, from baby formula to butter and cheese, and these tags have to be bought from a supplier and then they have to be attached, and time costs money. Costs retailers billions 'Rampant theft is also causing staff to go off sick because they are fed up with being intimidated and assaulted, and that is an additional cost to the retailer. 'Shoplifting is not the only cause of inflation and the most significant factors are rising production costs, geopolitical tensions and other external shocks. 'But you can't turn a blind eye to the significance of this crime as someone needs to pay for it and the burden is falling on the consumer.' Chancellor Rachel Reeves has come under increasing pressure to act on spiralling inflation after prices rose by more than expected in the year to June. In 2023, shoplifting added £133 to the cost of an average household's shopping bill for the year, according to the Centre For Retail Research. The Sun on Sunday's own research suggests the new cost is nearly £147 — a ten per cent increase. There were 516,971 shoplifting crimes last year, according to the Office for National Statistics, which is a 20 per cent increase on 2023 when 429,873 offences were recorded. I pinched £30m worth of goods as UK's most prolific shoplifter to get my daily hit of heroin - I've been jailed 28 times In its annual crime survey of major retailers, the British Retail Consortium found that violence and abuse against shop workers rose by 50 per cent, with more than 2,000 incidents recorded on average each day. BRC head of communications Tom Holder added: 'Shoplifting costs retailers billions a year, and on top of that there are myriad anti-crime measures that take place — everything from security guards to security tags, CCTV and all the rest. There's also crime costs including vandalism and employee theft that do not come under shop theft or security measures. 'The total cost is about £4.2billion across the entire retail sector. 'The amount lost is a large chunk of the profit margin. And that pushes up costs for everyone.' The Consortium is calling for the Government to crack down on the crime epidemic to prevent prices rising even further. Tom added: 'The increase in shoplifting is concerning for two reasons. First, it pushes up the cost of shopping for everyone. It can make the difference for some households between what they can afford and what they can't. 'The other side is that shoplifting is a major trigger for violence against staff, particularly if they intervene. 'Most theft isn't because Granny can't afford something so she slips a few choice items in her handbag. A large chunk of this is organised crime where people come in and go straight for the high-value goods — the alcohol, cigarettes, electronics and phones — with a group of four or five others, often wielding weapons. 'This crimewave is not being caused by a cost-of-living crisis, with people thinking the only way I can survive is to steal. 'The real rise has been in organised crime and that's not a crime of desperation, it's a crime of opportunities.' Our shoplifting probe has found that major High Street chains are now using alarm tags and stickers, each costing around £50, to protect everything from meals-for-one to make-up brushes. And Ann Summers has become the latest retailer to give its staff body cameras to combat thefts. 7 Rachel Reeves has come under increasing pressure to act on spiralling inflation after prices rose by more than expected in the year to June Credit: EPA 7 Bank of England Governor Andrew Bailey is under pressure to slash interest rates to stimulate growth Credit: Reuters Tesco Express workers in Redhill, Surrey, are attaching security devices to pizzas costing £4.75 as well as Tesco Finest ready meals retailing at £5.25. The alarms go off if someone removes the tags or leaves the store without paying. One exasperated employee told us: 'If they can flog it, they'll take it, even pizzas.' 'Any shop is a target' Meanwhile, at a Sainsbury's Local in crime-ravaged Croydon, South London, trendy Beavertown Neck Oil Session IPA beers selling for £2.25 are also fitted with security tags, as are cans of Sainsbury's gin and diet tonic costing £1.70. Down the road at Boots, entire displays of make-up products worth as little as £3 per item are fitted with anti-theft tags, and three security guards patrol the store. Shelves of confectionery are protected behind specially installed plastic security grills. Experts warn that users of sites such as Vinted, eBay, Facebook Marketplace and TikTok may be unwittingly buying stolen goods. Andrew Goodacre, CEO of the British Independent Retailers Association, is calling for internet giants to do more to stop organised gangs selling their wares online. We are stuck in a vicious circle, with high prices provoking people to steal at the same time as shoplifting forces stores to raise the cost of goods, exacerbating inflation Dr Mahroof He said: 'Previously, it was grocery stores that sold tobacco, alcohol and food that were worst affected. 'Now it seems that any shop is a target. Toy shops, children's clothes shops, hardware stores, health stores — they are all having to take measures to try to reduce the amount of stock they are losing. They are smaller so they can keep a closer eye on things, but they are also more vulnerable to the criminals who seem increasingly emboldened. 'We used to talk about two per cent shrinkage [stock losses] and it's certainly a lot more than that now. 'Organised crime is getting more organised when it comes to shoplifting, and shops are being attacked because the goods are so easy to sell on online platforms to unsuspecting shoppers. We need a way of addressing that. 'The online platforms need to be more rigorous. 'Are these items preloved or pre-stolen? That would be our question. And we think a lot of it is probably stolen.' All the stores mentioned were contacted for comment. SECURITY TAGS ON MONOPOLY AND BOOZE BOARD games including Monopoly and Cluedo were fitted with two forms of security alarms when the Sun on Sunday visited stores this week. They were protected by alarm tags and stickers in TGJones, formerly WHSmith, in Croydon, South London. It comes after serial thief Omar Innis, 32, was spotted by West End cops carrying board games and toys last month. It was the seventh time he had struck in over a month, nicking £1,300 of goods. At Westminster Magistrates' Court, Innis, of North London, pleaded guilty to theft and was jailed for 26 weeks. A spokesman for TGJones said: 'The high street is facing increased levels of crime and we have been taking action to ensure our stores remain welcoming places for our colleagues and customers.' 7 Shopkeeper Ben Selvaratnam in Croydon Credit: Paul Edwards
