2012-09-06 16:55:10 -
BAE Systems Case Study: Operating amidst defense spending cuts - a new company profile report on companiesandmarkets.com
BAE has been actively searching for alternative revenue streams from other governments. However, BAE recently lost bids for an $8 billion Japanese and a $15 billion Indian air defense contract. The company also brought in LEK Consulting in order to conduct a review of its shipbuilding division, as work at its UK shipbuilding yards has started to dry up.
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UK defense cuts are set to reduce spending by 8% across four years whilst the US announced cuts of $487
billion across 10 years. BAE´s UK shipyards are under review due to a lack of large-scale projects, the Royal Navy´s Type 26 frigates being the only major project on the horizon. BAE recently entered the critical infrastructure market.
Key reasons to purchase this research
How reliant is BAE Systems on the US and UK for sales and is the company capable of surviving their defense cuts? What other revenue streams does BAE have, and will they be sufficient to replace lost revenue caused by defense cuts?
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