Trump’s election to boost BAE

Trump’s election to boost BAE

BAE Systems has spoken of how the election of Donald Trump has boosted the defence giant after seeing full-year profits rise to £1.9bn last year.

The company expects an even bumper year next year following the election of Donald Trump as the US ups its defence spending significantly.

The group said underlying earnings rose 13% to £1.9bn last year as it reaped the benefit of its weaponry and aircraft being used in war-torn Syria and Yemen.

"In the US, following the two-year Bipartisan Budget Act signed in 2015, there are signs of a return to growth in defence budgets, with the new administration expected to further increase defence and security spending," BAE said in a statement. 

Trump has pledged to raise defence spending by £406bn to £811bn, which would raise demand for companies such as BAE which operate in the defence and armament sectors.

Revenue at BAE grew 6% to £17.8bn as the company flagged continued demand in the Middle East for protection against "national threats".

Outgoing chief executive Ian King said: "2016 was a good year for BAE Systems. Our strategy is well defined; we have a large order backlog, long-term programme positions, strong programme execution and a well-balanced portfolio.

"With an improved outlook for defence budgets in a number of our markets, we are well placed to continue to generate attractive returns for shareholders."

BAE confirmed on Wednesday that King, who took over as chief executive of the defence firm in September 2008, will retire in the summer and be replaced by chief operating officer Charles Woodburn.