BAE Systems says it's on track for growth

LONDON — BAE Systems PLC, Europe's largest defense contractor, said Wednesday it is on track for solid growth this year despite a drop in sales of land vehicles.

In a management update for the year to May 5, the company said it would not be affected by adjustments in U.S. defense spending, and it expected a continued boost from the strength of the U.S. dollar.

BAE shares closed down 1.2 percent at 360.5 pence on the London Stock Exchange.

Since the first of the year, BAE said it had landed contracts of 430 million pounds ($647 million) from the British government for support and maintenance of Typhoon aircraft and 574 million pounds for support and upgrading of Harrier aircraft.

The company said it expected no material impact from U.S. decisions to restructure the Future Combat System, the supply of subsystems for the F-22 aircraft, and a proposed commitment to increase the rate of initial F-35 aircraft procurement.

On April 30, BAE announced that it would close three factories in Britain with the loss of 500 jobs following a drop in its work for the British government. The affected plants, all part of BAE's Global Combat Systems Vehicles and Weapons businesses, are in the English cities of Telford, Leeds and Guildford.

The move followed a decision by the Ministry of Defense to postpone a utility vehicle contract, and a reduction in work supporting British Army operations in Iraq and Afghanistan, BAE said.

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