BAE Systems benefits from Green Bus Fund

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BAE Systems has published its half-yearly report for 2011 to June 30, showing headline sales for the company reduced by 13% on last year’s results but confirming the group’s large share of the UK Green Bus Fund.

Results were in expectation of previous predictions, especially given the effect on the group’s reduced sales, partly due to the UK Government Strategic Defence Review cuts.

However, the group has recently received central government backing for its bus industry operations after winning 60% of the hybrid drive opportunity arising from the UK Green Bus Fund.

The group has also expanded its HybriDrive series system to additional original equipment manufacturers in the transit bus market. The business has also introduced its next generation HybriDrive parallel system to the US and European truck markets.

The aerospace and defence company said its Platform Solutions arm, including hybrid technologies for the bus industry, continues to explore growth opportunities for its power and energy management products.

The report confirms the combining of BAE’s Platform Solutions and Electric Solutions divisions to create the new Electronic Systems business as from July this year.

The BAE board declared an overall 7.1% increase in the interim dividend to 7.5p and an operating cash inflow of £176m for the first half year to June 30, reflecting the group’s expected financial performance for the year. The group also announced up to £500m in market purchase of shares, made up of acquisitions which fall under its defence operations and a 12% reduction in underlying earnings before interest, tax and amortization deductions at £968m.