In a statement, British defence giant BAE Systems said, it has decided to stick to its revenue guidance, with earnings set to grow by 3% to 5% this year over the previous year’s result. It also mentioned that demand for its products and services continued to remain high.
BAE, whose main customers are located in the US, Britain and Saudi Arabia, said so far it had been able to overcome supply chain pressures affecting many of its peers globally, thanks to the long-lead items it uses in its programs.
Incidentally, the defence industry has largely been unaffected by the COVID-19 pandemic, with governments across the globe sticking to their respective military and security commitments. In fact, thanks to China’s belligerence, many countries plan on hiking up their defence budgets.
BAE said, it was well-positioned to benefit from growing defence spending particularly in Asia Pacific region.
“The recent AUKUS announcement is strategically significant,” said BAE in a statement on Monday.
The AUKUS pact will help Australia acquire U.S. nuclear-powered submarines, seen as a boost for BAE, which already makes nuclear submarines for the UK.
“This is a clear example of how nations are looking to co-ordinate capabilities in multi-domain operations to address the threat environment,” said BAE. ($1 = 0.7414 pounds)