One-off deals fail to plug BAe cash drain

Article Abstract:

British Aerospace (BAe) should see an improvement in its cash flow once a planned joint venture for its regional jets and turboprop activities, which have been performing badly, is established. However, the cost reductions from the arrangement may prove disappointing, and the company will probably have to undertake a large issue of shares to improve its financial position. A bid from GEC would improve prospects for its shares, but this is unlikely to take place.

BAE SYSTEMS (Farnborough, United Kingdom)

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Rolls-Royce: Competitive superiority

Article Abstract:

Rolls-Royce shares have performed well since September 1998, although performance since the 1987 flotation has been poor. High development costs have been compounded by the weak airline industry, although demand has improved, and 1998 was a record year for new commercial engine demand. The company's prospects for earnings seem healthy and earnings per share are expected to continue to grow by up to 10% a year.

Rolls-Royce Aerospace Group

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BAE Systems

Article Abstract:

UK defence and aerospace firm BAE Systems has won several large contracts in 2001, and its shares now look undervalued. BAE's GBP45 bil order book includes the UK government contract for Type 45 destroyers for the Royal Navy, and involvement in the US Joint Strike Fighter contract.

Securities, Defense industry, BAE Systems

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