BAE Systems Puts Dividend on Hold; Sees Pandemic Hurting 2020 Performance
April 03 2020 - 2:49AM
Dow Jones News
By Adria Calatayud
BAE Systems PLC said Friday that it has deferred a decision on
its declared final dividend for 2019 until July as it warned that
the coronavirus pandemic is expected to hurt its previous guidance
for 2020.
The U.K. defense group said it isn't possible to predict either
the duration of the disruption or its impact on the 2020 outturn at
this stage. The virus hasn't had a material impact on the company's
first-quarter performance, but BAE said it is experiencing more
significant disruptions at the start of the second quarter.
The company said its liquidity is strong with significant gross
cash and access to a 2 billion-pound ($2.48 billion) revolving
credit line committed to April 2024 along with other short- and
long-term debt options. BAE said it is also discussing funding
profiles with key customers to ensure its supply chain remains
strong.
BAE said it still expects to close its proposed acquisitions of
the Collins Aerospace Military Global Positioning System business
and Raytheon Co.'s Airborne Tactical Radios business in the coming
months.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
April 03, 2020 02:34 ET (06:34 GMT)
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