Wednesday, May 23, 2012
-BAE to supply 22 Hawk jets and 55 Pilatus propeller planes
-Shares down 0.2%, outperforming weak U.K. stock market
By Summer Said
OF DOW JONES NEWSWIRES
RIYADH (Zawya Dow Jones)--U.K. defense contractor BAE Systems PLC (BA.LN) Wednesday secured a $3-billion contract to supply Hawk trainer jets to Saudi Arabia's air force, the latest military equipment deal under a Saudi-British defense pact.
BAE Systems, whose products include Challenger tanks, Tornado jet fighters, Astute class submarines and Queen Elizabeth-class aircraft carriers, will also supply simulators, ground equipment, and spare parts as part of the aircraft deal.
"(The contract) will have a significant impact on the qualification of Saudi air crews who will be able to use fourth-generation fighter aircraft with efficiency," a Saudi Arabian official said.
BAE confirmed the contract for 22 advanced version of the Hawk jets as well as 55 Pilatus PC-21 propeller aircraft, made by privately-held Swiss company Pilatus Aircraft Ltd., and other equipment. BAE officials weren't immediately available for further comment.
BAE, for which Saudi Arabia is one of three key markets along with the U.K. and U.S., is also a supplier of Typhoon jet fighters to the Saudi Royal Air Force. The group said earlier this month that negotiations over this contract, known as Salam, including changes to the final assembly of the last 48 of 72 Typhoon aircraft ordered by the kingdom, are continuing.
BAE had an outstanding order book of GBP36.2 billion ($58 billion) at Dec. 31, down from GBP39.5 billion a year earlier as defense cutbacks in Europe and U.S. have weighed on its business.
BAE shares were down 0.2% at 274 pence around 1045 GMT, valuing the company at GBP8.91 billion. The London stock exchange's benchmark FTSE 100 index was down 1.9%.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com; Twitter: @ZDJnews
Matthew Curtin in Paris contributed to this article.
(END) Dow Jones Newswires
23-05-12 1110GMT
