(Sharecast News) - UK arms maker BAE Systems said full year profits would be lower due to the coronavirus pandemic, but expected a good second half as it reinstated dividend payments.
The company on Thursday said annual earnings per share would be a mid-single digit percentage lower than last year's result of 45.8 pence.
BAE reinstated a 13.8p-a-share payout deferred from April and declared an interim dividend of 9.4p a share.
Pre-tax profit fell 11% to £689m in the six months to June 30, while revenue rose 5% per cent to £9.18bn year-on-year and net debt increased to £2.04bn, from £1.89bn.
Full-year free cash flow was now expected to be £800m, excluding a £1bn pension payment, close to original guidance allowing for the lower earnings, BAE said.
Chief executive Charles Woodburn said demand for BAE's weaponry remained high and he was optimistic on the second six months of the fiscal year, assuming no significant resurgence of the pandemic.
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