Posted on 02/19/2014 8:06:45 AM PST by sukhoi-30mki
Years of uncertainty ends over multi-billion pound sale of fighters to Saudi Arabia in boost to defence giant ahead of annual results
BAE has finally agreed a deal over price increases for the sale of 72 Eurofighter Typhoon jets to Saudi Arabia.
The FTSE 100 defence company signed a £4.5bn contract to provide the supersonic fighters to the Middle East nation seven years ago but the sale has faced hurdles over cost, forcing BAE to defer earnings from the so-called "Salam" deal.
BAE said on Wednesday that it had agreed "price escalation terms" to the original agreement which had included a provision for the deal to "be at 2005 economic conditions". Shares in the company opened up 4pc but then slipped back.
Ian King, chief executive, said: "This is an equitable outcome for all parties, I am pleased that we have been able to conclude this negotiation which builds on our long-standing relationship with this much valued customer."
The company said the terms of the agreement were "broadly consistent with the company's prior trading outlook for 2013" and cash settlement is expected to follow the pricing agreement, commencing in the early part of 2014.
Saudi Arabia is the biggest export customer for the Typhoon and ending years of uncertainty over the sale comes as a welcome relief for BAE, which is due to announce its full-year results on Thursday.
In December the company shocked the market by revealing that a potential £6bn deal to sell 60 of the fighters to the United Arab Emirates had collapsed after years of talks and said it had failed for a third year to agree the price for Saudi Typhoon deal. The company said lack of a price agreement with S
(Excerpt) Read more at telegraph.co.uk ...
Wow. Look at what Lockheed has missed out on, since the F-35 turned into a complete Turkey.
We need to ditch the F-35.
Arms sales are largely dependent on backing (pressure/sales help) by the government. Obama has let us down. Each sale is not only lost for now, but in the future as well. No upgrades, no collateral sales. This sales failure will resonate down the decades.
We need to ditch the F-35.
Boeing missed out with the F/A-18 too. What do you suggest Boeing should do?
Build a “Silent Hornet” follow on to the FA-18, like the F-15SE?
Great flag there on the right for all of you silly kafirs.
Garbage country. Garbage culture. Garbage religion.
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