Oct 10, 2013

BAE Systems Renegotiating U.K. Aircraft Carrier Contract Terms

BAE Systems said it is renegotiating contract terms with the U.K. over a 5.3 billion pound ($8.4 billion) effort to building two aircraft carriers, whose costs have already risen more than 50 percent since 2005.
The first of two carriers is nearing completion.
The company said it’s also in talks with the U.K. government over how to bring shipbuilding capacity in line with demand. The U.K. is not buying enough vessels to sustain three surface shipyards once work on the carriers winds down.
BAE said trading was in-line with expectations and that the full-year earnings target will be met assuming successful conclusion of talks with Saudi Arabia over the pricing of Typhoon combat jets.

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