|Type||Public limited company|
|Traded as||LSE: BA.|
|Industry||Aerospace, Defence, Information security|
Marconi Electronic Systems
|Founded||30 November 1999|
|Headquarters||London, United Kingdom|
|Key people||Sir Richard Olver (Chairman)
Ian King (CEO)
|Products||Civil and military aerospace
Land warfare systems
|Services||Maintenance, consultancy, training etc.|
|Revenue||£17.834 billion (2012)|
|Operating income||£1.640 billion (2012)|
|Profit||£1.079 billion (2012)|
|Subsidiaries||BAE Systems Inc.
BAE Systems Australia
BAE Systems Detica
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London in the United Kingdom and with operations worldwide. It is among the world's largest defence contractors; it ranked as the second-largest based on applicable 2012 revenues. Its largest operations are in the United Kingdom and United States, where its BAE Systems Inc. subsidiary is one of the six largest suppliers to the US Department of Defense. Other major markets include Australia, India and Saudi Arabia. The company was formed on 30 November 1999 by the £7.7 billion merger of two British companies; Marconi Electronic Systems (MES) – the defence electronics and naval shipbuilding subsidiary of the General Electric Company plc (GEC) – and British Aerospace (BAe) – an aircraft, munitions and naval systems manufacturer.
BAE Systems is the successor to various aircraft, shipbuilding, armoured vehicle, armaments and defence electronics companies, including The Marconi Company, the first commercial company devoted to the development and use of radio; A.V. Roe and Company, one of the world's first aircraft companies; de Havilland, manufacturer of the world's first commercial jet airliner; British Aircraft Corporation, co-manufacturer of the Concorde supersonic transport; Supermarine, manufacturer of the Spitfire; Yarrow Shipbuilders, builders of the Royal Navy's first destroyers; and Vickers Shipbuilding and Engineering, builders of the Royal Navy's first submarines. Since its formation it has made a number of acquisitions, most notably of United Defense and Armor Holdings of the United States, and sold its shares in Airbus, Astrium, AMS and Atlas Elektronik.
BAE Systems is involved in several major defence projects, including the F-35 Lightning II, the Eurofighter Typhoon, the Astute-class submarine and the Queen Elizabeth-class aircraft carriers. The company has been the subject of criticism, in terms of general opposition to the arms trade and particularly specific allegations of unethical and corrupt practices. BAE Systems is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
- 1 History
- 2 Products
- 3 Areas of business
- 4 Shareholders
- 5 Organisation
- 6 Corporate governance
- 7 Financial information
- 8 Corruption investigations
- 9 Criticism
- 10 See also
- 11 References
- 12 External links
BAE Systems was formed on 30 November 1999 by the £7.7 billion merger of British Aerospace (BAe) and Marconi Electronic Systems (MES). As a result, BAE Systems is the successor to many of the most famous British aircraft, defence electronics and warship manufacturers. Predecessor companies built the Comet, the world's first commercial jet airliner; the Harrier "jump jet", the world's first operational Vertical/Short Take-Off and Landing (VTOL) aircraft; the "groundbreaking" Blue Vixen radar carried by Sea Harrier FA2s and which formed the basis of the Eurofighter's CAPTOR radar; and co-produced the iconic Concorde supersonic airliner with Aérospatiale.
British Aerospace was a civil and military aircraft manufacturer, as well as a provider of military land systems. The company had emerged from the massive consolidation of UK aircraft manufacturers since World War II. British Aerospace was formed on 29 April 1977 by the nationalisation and merger of The British Aircraft Corporation (BAC), the Hawker Siddeley Group and Scottish Aviation. Both BAC and Hawker Siddeley were themselves the result of various mergers and acquisitions.
Marconi Electronic Systems was the defence subsidiary of British engineering firm The General Electric Company (GEC), dealing largely in military systems integration, as well as naval and land systems. Marconi's heritage dates back to Guglielmo Marconi's Wireless Telegraph & Signal Company, founded in 1897. GEC purchased English Electric (which included Marconi) in 1968 and thereafter used the Marconi brand for its defence businesses (as GEC-Marconi and later Marconi Electronic Systems). GEC's own defence heritage dates back to World War I, when its contribution to the war effort included radios and bulbs. World War II consolidated this position, as the company was involved in important technological advances, notably the cavity magnetron for radar. Between 1945 and 1999, GEC-Marconi/Marconi Electronic Systems became one of the world's most important defence contractors. GEC's major defence related acquisitions included Associated Electrical Industries in 1967, Yarrow Shipbuilders in 1985, Plessey companies in 1989, parts of Ferranti's defence business in 1990, The rump of Ferranti when it went into receivership in 1993/1994, Vickers Shipbuilding and Engineering in 1995 and Kværner Govan in 1999. In June 1998, MES acquired Tracor, a major American defence contractor, for £830 million (approx. US$1.4 billion c. 1998).
|Timeline of British aerospace companies since 1955|
|Short Brothers and Harland Ltd.||Short Brothers Ltd.||Short Brothers plc|
|F. G. Miles||Beagle Aircraft|
|Scottish Aviation||British Aerospace (BAe)||BAE Systems|
|Blackburn||Hawker Siddeley Aviation
Hawker Siddeley Dynamics
|Vickers-Armstrongs||British Aircraft Corporation (BAC)|
|The General Electric Company (GEC)||The Marconi Company||GEC-Marconi/Marconi Electronic Systems|
|The English Electric Company||Marconi plc|
The 1997 merger of American corporations Boeing and McDonnell Douglas, which followed the forming of Lockheed Martin, the world's largest defence contractor in 1995, increased the pressure on European defence companies to consolidate. In June 1997 British Aerospace Defence managing director John Weston commented "Europe... is supporting three times the number of contractors on less than half the budget of the U.S.". European governments wished to see the merger of their defence manufacturers into a single entity, a European Aerospace and Defence Company.
As early as 1995 British Aerospace and the German aerospace and defence company DaimlerChrysler Aerospace (DASA) were said to be keen to create a transnational aerospace and defence company. The two companies envisaged including Aérospatiale, the other major European aerospace company, but only after its privatisation. The first stage of this integration was seen as the transformation of Airbus from a consortium of British Aerospace, DASA, Aérospatiale and Construcciones Aeronáuticas SA into an integrated company; in this aim British Aerospace and DASA were united against the various objections of Aérospatiale. As well as Airbus, British Aerospace and DASA were partners in the Panavia Tornado and Eurofighter Typhoon aircraft projects. Merger discussions began between British Aerospace and DASA in July 1998, just as French participation became more likely with the announcement that Aérospatiale was to merge with Matra and emerge with a diluted French government shareholding. A merger was agreed between British Aerospace chairman Richard Evans and DASA CEO Jürgen Schrempp in December 1998.
Meanwhile GEC was also under pressure to participate in defence industry consolidation. Reporting the appointment of George Simpson as GEC managing director in 1996, The Independent had said "some analysts believe that Mr Simpson's inside knowledge of BAe, a long-rumoured GEC bid target, was a key to his appointment. GEC favours forging a national 'champion' defence group with BAe to compete with the giant US organisations." When GEC put MES up for sale on 22 December 1998, British Aerospace abandoned the DASA merger in favour of purchasing its British rival. The merger of British Aerospace and MES was announced on 19 January 1999. Evans stated that in 2004 that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA. The merger created a vertically integrated company which The Scotsman described as "[a combination of British Aerospace's] contracting and platform-building skills with Marconi's coveted electronics systems capability", for example combining the manufacturer of the Eurofighter with the company that provided many of the aircraft's electronic systems; British Aerospace was MES' largest customer. In contrast, DASA's response to the breakdown of the merger discussion was to merge with Aérospatiale to create the European Aeronautic Defence and Space Company (EADS), a horizontal integration. EADS has since considered a merger with Thales to create a "fully rounded" company.
Seventeen undertakings were given by BAE Systems to the Department of Trade and Industry which prevented a reference of the merger to the Monopolies and Mergers Commission. These were largely to ensure that the integrated company would tender sub-contracts to external companies on an equal basis with its subsidiaries. Another condition was the "firewalling" of former British Aerospace and MES teams on defence projects such as the Joint Strike Fighter (JSF). In 2007 the government, on advice from the Office of Fair Trading, announced it had agreed to release BAE Systems from ten of the undertakings due to "a change in circumstances".
BAE Systems inherited the "special" shareholding that was established when British Aerospace was privatised. This special share, with a nominal value of £1, is held on behalf of the Secretary of State for Trade and Industry. This shareholding prevents amendments of certain parts of the company's Articles of Association without the permission of the Secretary of State. These Articles require that no foreign person or persons acting together may hold more than 15% of the company's shares or control the majority of the board and that the CEO and the Chairman of BAE Systems must be British nationals.
British Aerospace's head office was in Warwick House, Farnborough Aerospace Centre in Farnborough, Hampshire. BAE Systems retains this but the registered office, and base for the senior leadership team, is in the City of Westminster.
Expansion and restructuring
BAE Systems' first annual report identified Airbus, support services to militaries and integrated systems for air, land and naval applications as key areas of growth. It also stated the company's desire to both expand in the US and participate in further consolidation in Europe. BAE Systems described 2001 as an "important year" for its European joint ventures, which were reorganised considerably. The company has described the rationale for expansion in the US; "[it] is by far the largest defence market with spend running close to twice that of the Western European nations combined. Importantly, US investment in research and development is significantly higher than in Western Europe." When Dick Olver was appointed chairman in July 2004 he ordered a review of the company's businesses which ruled out further European acquisitions or joint ventures and confirmed a "strategic bias" for expansion and investment in the US. The review also confirmed the attractiveness of the land systems sector and, with two acquisitions in 2004 and 2005, BAE moved from a limited land systems supplier to the second largest such company in the world. This shift in strategy was described as "remarkable" by the Financial Times. Between 2008 and early 2011 BAE acquired five cyber security companies in a shift in strategy to take account of reduced spending by governments on "traditional defence items such as warships and tanks".
In 2000 Matra Marconi Space, a joint BAE Systems/Matra company, was merged with the space division of DASA to form Astrium. On 16 June 2003 BAE sold its 25% share to EADS for £84 million, however due to the lossmaking status of the company, BAE Systems invested an equal amount for "restructuring". In January 2001 Airbus Industrie was transformed from an inherently inefficient consortium structure to a formal joint stock company. BAE Systems sold its 54% majority share of BAE Systems Canada, an electronics company, in April for $CAD310 (approx. £197 million as of December 2010). In November 2001, the company announced the closure of the Avro Regional Jet (Avro RJ) production line at Woodford and the cancellation of the Avro RJX, an advanced series of the aircraft family, as the business was "no longer viable". The final Avro RJ to be completed became the last British civil airliner. In November 2001 BAE sold its 49.9% share of Thomson Marconi Sonar to Thales for £85 million. A further step of European defence consolidation was the merger of BAE's share of Matra BAe Dynamics and the missile division of Alenia Marconi Systems (AMS) into MBDA in December. MBDA thus became the world's second largest missile manufacturer. Although EADS has been reported to be interested in acquiring full control of MBDA, BAE has said that, unlike Airbus, MBDA is a "core business".
In June 2002, BAE Systems confirmed it was in takeover discussions with TRW, an American aerospace, automotive and defence business. This was prompted by Northrop Grumman's £4.1 billion (approx. US$6 billion c. 2002) hostile bid for TRW in February 2002. A bidding war between BAE Systems, Northrop and General Dynamics ended on 1 June when Northrop's increased bid of £5.1 billion was accepted. On 11 December 2002, the company issued a shock profit warning due to cost overruns of the Nimrod MRA4 maritime reconnaissance/attack aircraft and the Astute-class submarine projects. On 19 February 2003 BAE took a charge of £750 million against these projects and the Ministry of Defence (MOD) agreed to pay a further £700 million of the cost. In 2000 the company had taken a £300 million "loss charge" on the Nimrod contract which was expected to cover "all the costs of completion of the current contract".
The UK government, following a cabinet row described as "one of the most bitter Cabinet disputes over defence contracts since the Westland helicopter affair in 1985", ordered 20 BAE Hawk trainer aircraft with 24 options in July 2003 in a deal worth £800 million. The deal was significant because it was a factor in India's decision to finalise a £1 billion order for 66 Hawks in March 2004. Also in July 2003 BAE Systems and Finmeccanica announced their intention to set up three joint venture companies, to be collectively known as Eurosystems. These companies would have pooled the avionics, C4ISTAR and communications businesses of the two companies. However the difficulties of integrating the companies in this way led to a re-evaluation of the proposal; BAE Systems' 2004 Annual Report states that "recognising the complexity of the earlier proposed Eurosystems transaction with Finmeccanica we have moved to a simpler model". The main part of this deal was the dissolution of AMS and the establishment of SELEX Sensors and Airborne Systems; BAE Systems sold its 25% share of the latter to Finmeccanica for €400 million (approx. £270 million c. 2007) in March 2007.
In May 2004, it was reported that the company was considering selling its shipbuilding divisions, BAE Systems Naval Ships and BAE Systems Submarines. It was understood that General Dynamics wished to acquire the submarine building facilities at Barrow-in-Furness, while VT Group was said to be interested in the remaining yards on the Clyde. However in 2008 BAE Systems merged its Surface Fleet arm with the shipbuilding operations of VT Group to form BVT Surface Fleet, an aim central to the British Government's Defence Industrial Strategy.
On 4 June 2004, BAE Systems outbid General Dynamics for Alvis Vickers, the UK's main manufacturer of armoured vehicles. Alvis Vickers was merged with the company's RO Defence unit to form BAE Systems Land Systems. Recognising the lack of scale of this business compared to General Dynamics, BAE Systems executives soon identified the US defence company United Defense Industries (UDI), a major competitor to General Dynamics, as a main acquisition target. On 7 March 2005 BAE announced the £2.25 billion (approx. US$4.2 billion c. 2005) acquisition of UDI. UDI, now BAE Systems Land and Armaments, manufactures combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions.
In December 2005, BAE Systems announced the sale of its German naval systems subsidiary, Atlas Elektronik, to ThyssenKrupp and EADS. The sale was complicated by the requirement of the German government to approve any sale. The Financial Times described the sale as "cut price" because French company Thales bid €300 million, but was blocked from purchasing Atlas on national security grounds. On 31 January 2006 the company announced the sale of BAE Systems Aerostructures to Spirit AeroSystems, Inc, having said as early as 2002 that it wished to dispose of what it did not regard as a "core business".
On 18 August 2006 Saudi Arabia signed a contract worth £6 billion to £10 billion for 72 Eurofighter Typhoons, to be delivered by BAE Systems. On 10 September 2006 the company was awarded a £2.5 billion contract for the upgrade of 80 Royal Saudi Air Force Tornado IDSs. One of BAE Systems' major aims, as highlighted in the 2005 Annual Report, was the granting of increased technology transfer between the UK and the US. The F-35 (JSF) programme became the focus of this effort, with British government ministers such as Lord Drayson, Minister for Defence Procurement, suggesting the UK would withdraw from the project without the transfer of technology that would allow the UK to operate and maintain F-35s independently. However, on 12 December 2006, Lord Drayson signed an agreement which allows "an unbroken British chain of command" for operation of the aircraft. On 22 December 2006 BAE received a £947 million contract to provide guaranteed availability of Royal Air Force (RAF) Tornados.
On 7 May 2007 the company announced its subsidiary BAE Systems Inc. was to purchase Armor Holdings for £2.3 billion (approx. US$4.5 billion c. 2007) and completed the deal on 31 July 2007. The company is a manufacturer of tactical wheeled vehicles and a provider of vehicle and individual armour systems and survivability technologies. BAE Systems (and British Aerospace previously) was a technology partner to the McLaren Formula One team from 1996 to December 2007. The partnership originally focused on McLaren's F1 car's aerodynamics, eventually moving on to carbon fibre techniques, wireless systems and fuel management. BAE Systems' main interest in the partnership was to learn about the high speed build and operations processes of McLaren.
The company announced the acquisition of Tenix Defence, a major Australian defence contractor on 18 January 2008. The purchase was completed on 27 June for A$775 million (£373 million) making BAE Systems Australia that country's largest defence contractor. The UK Ministry of Defence awarded BAE Systems a 15-year munitions contract in August 2008 worth up to £3 billion. The contract guarantees supply of 80% of the UK Armed Forces' ammunition and required BAE to modernise its munitions manufacturing facilities. BAE Systems expanded its intelligence and security business with the £531 million purchase of Detica Group in July 2008. It continued this strategy with purchases of Danish cyber and intelligence company ETI for approximately $210 million in December 2010, and Norkom Group PLC the following month for €217 million. The latter provides counter fraud and anti-money laundering solutions to the global financial services industry where its software assists institutions to comply with regulations on financial intelligence and monitoring.
In February 2010 BAE Systems announced a £592 million writedown of the former Armor Holdings business following the loss of the Family of Medium Tactical Vehicles contract in 2009. It was outbid by Oshkosh Corporation for the £2.3 billion ($3.7 billion) contract. Land and Armaments had been the "star performer" of BAE Systems' subsidiaries, growing from sales of £482 million in 2004 to £6.7 billion in 2009.
BAE Systems inherited British Aerospace's 35% share of Saab AB, with which it produced and marketed the Gripen fighter aircraft. In 2005 it reduced this share to 20.5% and in March 2010 announced its intention to sell the remainder. The Times stated that the decision brought "to an end its controversial relationship with the Gripen fighter aircraft". Several of the export campaigns for the aircraft were subject to allegations of bribery and corruption. Meanwhile the company was increasing its presence in India with the formation of Defence Land Systems India in April, a joint venture with Mahindra & Mahindra Limited. BAE Systems holds just 26% of the equity due to Indian foreign direct investment regulations.
The company continued its move into support services in May 2010 with the purchase of the marine support company Atlantic Marine for $352 million. In September 2010 BAE Systems announced plans to sell the Platform Solutions division of BAE Systems Inc., which the Financial Times said could yield as much as £1.3 billion. However, despite "considerable expressions of interest", the sale was abandoned in January 2011. On 19 October 2010 the British government cancelled the Nimrod project as part of its Strategic Defence and Security Review. The purchases of Queen Elizabeth-class aircraft carrier, the Astute class submarines, and the Type 26 frigates were all confirmed. A new generation of nuclear missile submarines will be built, however the final decision will be delayed until after the next election.
BAE Systems sold the regional aircraft lease portfolio and asset management arm of its BAE Systems Regional Aircraft business in May 2011. This unit leases the BAe 146/Avro RJ family, BAe ATP, Jetstream and BAe 748. The company retained the support and engineering activities of the business as part of the transaction.
In September 2011, BAE Systems began consultation with unions and workers over plans to cut nearly 3,000 jobs, mostly in the company's military aircraft division.
In its 2012 half-year report, the company revealed a 10% decline in revenue in the six months up to the 30 June due to falling demand for armaments. In May 2012 the governments of the UK and Saudi Arabia reached an agreement on an arms package which saw a £1.6 billion contract awarded to BAE for the delivery of 55 Pilatus PC-21 and 22 BAE Systems Hawk aircraft. The Sultanate of Oman ordered Typhoon and Hawk aircraft worth £2.5 billion in December 2012.
On 13 September 2012, it was reported that BAE Systems and EADS had entered possible merger talks. In case of a potential tie-up, BAE shareholders would own 40% and EADS' 60% of the new organisation. However, on 10 October 2012, the companies said the merger talks had been called off.
BAE Systems inherited British Aerospace's share of Airbus Industrie, which consisted of two factories at Broughton and Filton. These facilities manufactured wings for the Airbus family of aircraft. In 2001 Airbus was incorporated as Airbus SAS, a joint stock company. In return for a 20% share in the new company BAE Systems transferred ownership of its Airbus plants (known as Airbus UK) to the new company.
Despite repeated suggestions as early as 2000 that BAE Systems wished to sell its 20% share of Airbus, the possibility was consistently denied by the company. However on 6 April 2006 BBC News reported that it was indeed to sell its stake, then "conservatively valued" at £2.4 billion. Due to the slow pace of informal negotiations, BAE Systems exercised its put option which saw investment bank Rothschild appointed to give an independent valuation. Six days after this process began, Airbus announced delays to the A380 with significant effects on the value of Airbus shares. On 2 June 2006 Rothschild valued the company's share at £1.87 billion, well below its own analysts' and even EADS' expectations. The BAE Systems board recommended that the company proceed with the sale. On 4 October 2006 shareholders voted in favour and the sale was completed on 13 October. BAE Systems' sale of its Airbus share saw the end of UK owned involvement in civil airliner production. Airbus Operations Ltd (the former Airbus UK) continues to be the Airbus "Centre of Excellence" for wing production, employing over 9,500, but is entirely owned by EADS.
It plays important roles in military aircraft production. The company's Typhoon fighter and Tornado fighter-bomber are both front line aircraft of the RAF. The company is a major partner in the F-35 Lightning II programme. Its Hawk advanced jet trainer aircraft has been widely exported. In July 2006, the British government declassified the HERTI (High Endurance Rapid Technology Insertion), an Unmanned Aerial Vehicle (UAV) which can navigate autonomously.
BAE Systems Land and Armaments manufactures the M2/M3 Bradley fighting vehicle family, the US Navy Advanced Gun System (AGS), the M113 armoured personnel carrier (APC), the M109 Paladin, the British Army's Challenger II, Warrior Tracked Armoured Vehicle, M777 howitzer and the Panther Command and Liaison Vehicle
Areas of business
BAE Systems defines its "home markets" to be Australia, India, Saudi Arabia, the UK and the US.
BAE Systems is the predominant supplier to the UK Ministry of Defence; in 2009/2010 BAE Systems companies in the list of Top 100 suppliers to the MOD received contracts totalling £3.98 billion, with total revenue being higher when other subsidiary income is included. In comparison the second largest supplier is Babcock International Group and its subsidiaries, with a revenue of £1.1 billion from the MOD. Oxford Economic Forecasting states that in 2002 the company's UK businesses employed 111,578 people, achieved export sales of £3 billion and paid £2.6 billion in taxes. These figures exclude the contribution of Airbus UK.
Since its creation BAE Systems had a difficult relationship with the MOD. This was attributed to deficient project management by the company, but also in part to the deficiencies in the terms of "fixed price contracts". CEO Mike Turner said in 2006 "We had entered into contracts under the old competition rules that frankly we shouldn't have taken". These competition rules were introduced by Lord Levene during the 1980s to shift the burden of risk to the contractor and were in contrast to "cost plus contracts" where a contractor was paid for the value of its product plus an agreed profit.
BAE Systems was operating in "the only truly open defence market", which meant that it was competing with US and European companies for British defence projects, while they were protected in their home markets. The US defence market is competitive, however largely between American firms, while foreign companies are excluded. In December 2005 the MOD published the Defence Industrial Strategy (DIS) which has been widely acknowledged to recognise BAE Systems as the UK's "national champion". The DIS identifies key industrial capabilities which must be maintained within the UK through long-term government commitments to support research spending and procurement. Of these capabilities, several are dominated by BAE Systems, including naval vessels and submarines, combat vehicles, fixed-wing aircraft, general munitions (with the exception of certain "niche capabilities abroad") and Network Enabled Capability (defined as C4ISTAR in the DIS). The company maintains an interest in future UAV technologies through its collaborative FLAVIIR research programme with EPSRC.
After the publication of the DIS BAE Systems CEO Mike Turner said "If we didn't have the DIS and our profitability and the terms of trade had stayed as they were... then there had to be a question mark about our future in the UK". Lord Levene said in the balance between value for money or maintaining a viable industrial base the DIS "tries as well as it can to steer a middle course and to achieve as much as it can in both directions. ...We will never have a perfect solution."
On 6 November 2013, BAE Systems announced that 1,775 jobs are to go at its yards in England and Scotland. Shipbuilding will cease entirely in Portsmouth in 2014 with the loss of 940 jobs, and a further 835 jobs would be lost in other yards in Filton, near Bristol, and Govan, Rosyth, and Scotstoun in Scotland.
The attraction of MES to British Aerospace was largely its ownership of Tracor, a major American defence contractor. Since its creation the company has steadily increased its investment in and revenues from the US.
BAE Systems Inc. now sells more to the US Department of Defense (DOD) than the UK MOD. The company has been allowed to buy important defence contractors in the US, however its status as a UK company requires that its US subsidiaries are governed by American executives under Special Security Arrangements. The company faces fewer impediments in this sense than its European counterparts, as there is a high degree of integration between the US and UK defence establishments. BAE Systems' purchase of Lockheed Martin Aerospace Electronic Systems in November 2000 was described by John Hamre, CEO of the Center for Strategic and International Studies and former Deputy Secretary of Defense, as "precedent setting" given the advanced and classified nature of many of that company's products.
The possibility of a merger between BAE Systems Inc. and major North American defence contractors has long been reported, including Boeing, General Dynamics, Lockheed Martin, and Raytheon.
Rest of world
BAE Systems Australia is the largest defence contractor in Australia, having more than doubled in size with the acquisition of Tenix Defence. The Al Yamamah agreements between the UK and Saudi Arabia require "the provision of a complete defence package for the Kingdom of Saudi Arabia"; BAE Systems Australia employs 4,600 people in the kingdom. BAE Systems Land Systems South Africa, 75% owned by BAE Systems, is the largest military vehicle manufacturer in South Africa, and is currently taking part in the US MRAP programme. BAE Systems' interests in Sweden are a result of the purchases of Alvis Vickers and UDI, which owned Hägglunds and Bofors respectively; The companies are now part of BAE Systems AB and have a combined workforce of approximately 1,750. Also, BAE Systems owns 49% of Air Astana, Kazakhstan.
As of 8 October 2012 BAE Systems listed the following as "significant" shareholders: Invesco Perpetual (13.38%), BlackRock (4.66%), Franklin Templeton Investments, (3.95%) and Legal & General, (3.62%).
BAE Systems has its head office and its registered office in City of Westminster, London. In addition to its central London offices, it has an office in Farnborough, Hampshire that houses functional specialists and support functions.
The company divides its business into five business groups: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Platforms & Services (UK), and Platforms & Services (International).
- Electronic Systems
- This division combines the US and UK electronics businesses. It produces electronic combat systems, sensors, defensive systems, communication systems, surveillance and targeting systems, military and civilian flight and engine controls, and hybrid drive systems.
- Cyber & Intelligence
- The US-based subsidiaries of this group operate in the cyber, secure government, and commercial and financial security markets. The UK operations are through BAE Systems Detica.
- Platforms & Services (US)
- Platforms & Services (US) operates the Support Solutions business which provides ship repair and modernisations primarily to the US Navy. It also has activities in aircraft modification and support services, for example the management contract for the US Army's Radford Army Ammunition Plant.
- BAE Systems Land & Armaments is based in the US, with subsidiaries in the UK, Sweden and South Africa. It produces tracked and wheeled military vehicles, artillery, ammunition and naval weapons.
- Platforms & Services (UK)
- The Platforms & Services (UK) business group includes BAE Systems Military Air & Information and BAE Systems Maritime.
- Military Air & Information is responsible for the design, development and production of BAE Systems' major military aircraft programmes; Typhoon, F-35 Lightning II, Tornado, Hawk and UAV projects such as Taranis. The company's 33% share of Eurofighter Jagdflugzeug GmbH (33%) represents its involvement in the Eurofighter Typhoon project. It has also inherited operations of the former BAE Systems Insyte business such as military communications and integrated command & control (C²) systems.
- Maritime groups together BAE Systems' naval shipbuilding and services businesses. These are BAE Systems Maritime – Naval Ships, BAE Systems Maritime – Submarines, and BAE Systems Maritime Services. Maritime has inherited the naval systems businesses of Insyte, for example BAE Systems Underwater Systems and naval radar.
- Platforms & Services (International)
- BAE Systems Australia provides aircraft support, training and simulation, communication and command systems and is the principal subcontractor to Boeing in the 737 Airborne Early Warning & Control programme. A major market of this division is the provision of services to Saudi Arabia as part of the Al Yamamah project and subsequent Saudi Typhoon contract. BAE Systems India's operations include a 26% holding in Defence Land Systems India. Other shareholdings include 37.5% of MBDA
- BAE Systems' HQ division "comprises the Group's head office activities, together with a 49% interest in Air Astana."
BAE Systems' chairman is Dick Olver. The executive directors are Ian King (CEO), Linda Hudson, and George Rose. The non-executive directors are Harriet Green, Michael Hartnall, Sir Peter Mason, Carl Symon, Roberto Quarta, Paul Anderson and Nick Rose.
The company's first CEO, John Weston, was forced to resign in 2002 in a boardroom "coup" and was replaced by Mike Turner. The Business reported that Weston was ousted when non-executive directors informed the chairman that they had lost confidence in him. Further, it was suggested that at least one non-executive director was encouraged to make such a move by the MOD due to the increasingly fractious relationship between BAE Systems and the government. As well as the terms of the Nimrod contract, Weston had fought against the MOD's insistence that one of the first three Type 45 destroyers should be built by VT Group. The Business said he considered this "competition-policy gone mad".
It is understood that Turner had a poor working relationship with senior MOD officials, (for example with former Defence Secretary Geoff Hoon) Significantly the first meeting between Olver and Hoon was said to have gone well, a MOD official commented "He is a man we can do business with. We think it is good to be taking a fresh look at things." It has been suggested that relations between Turner and Olver were tense. On 16 October 2007 the company announced that Mike Turner would retire in August 2008. The Times called his departure plans "abrupt" and a "shock", given previous statements that he wished to retire in 2013 at the age of 65. Despite suggestions that BAE Systems would prefer an American CEO due to the increasing importance of the United States defence market to the company and the opportunity to make a clean break from corruption allegations and investigations related to the Al Yamamah contracts the company announced on 27 June 2008 that it had selected the company's Chief operating officer Ian King to succeed Turner with effect from 1 September 2008; The Financial Times noted that King's career at Marconi distances him from the British Aerospace-led Al Yamamah project.
|Turnover (£ million)||Profit/(loss) before tax (£m)||Net profit/(loss) (£m)||Earnings per share (p)|
[a]: Restated to exclude Airbus contributions. Included for comparison.
[b]: Data prepared using UK GAAP guidelines. Recent data prepared using International Financial Reporting Standards.
[c]: Reflects £750 million charges for problems with Nimrod MRA4 (£500 million) and Astute class submarine (£250 million) programmes.
Serious Fraud Office
BAE Systems has been under investigation by the Serious Fraud Office, into the use of political corruption to help sell arms to Chile, Czech Republic, Romania, Saudi Arabia, South Africa, Tanzania and Qatar. In response, BAE Systems' 2006 Corporate Responsibility Report states "We continue to reject these allegations...We take our obligations under the law extremely seriously and will continue to comply with all legal requirements around the world. In June 2007 Lord Woolf was selected to lead what the BBC described as an "independent review.... [an] ethics committee to look into how the defence giant conducts its arms deals." The report, Ethical business conduct in BAE Systems plc – the way forward, made 23 recommendations, measures which the company has committed to implement. The finding stated that "in the past BAE did not pay sufficient attention to ethical standards in the way it conducted business," and was described by the BBC as "an embarrassing admission."
In September 2009, the Serious Fraud Office announced that it intended to prosecute BAE Systems for offences relating to overseas corruption. The Guardian claimed that a penalty "possibly of more than £500m" might be an acceptable settlement package. On 5 February 2010, BAE Systems agreed to pay £257m criminal fines to the US and £30m to the UK. The UK had already massively benefited from £43 billion contract in tax receipts and jobs in the UK, and dropped an anti-corruption investigation into the Al Yamamah contracts later taken up by US authorities. Crucially, under a plea bargain with the US Department of Justice, BAE Systems was convicted of felony conspiracy to defraud the United States government and sentenced in March 2010 by U.S. District Court Judge John D. Bates to pay a $400 million fine, one of the largest fines in the history of the DOJ. U.S. District Judge John Bates said the company's conduct involved "deception, duplicity and knowing violations of law, I think it's fair to say, on an enormous scale". BAE Systems did not directly admit to bribery, and is thus not internationally blacklisted from future contracts. Some of the £30m penalty the company will pay in fines to the UK will be paid ex gratia for the benefit of the people of Tanzania. On 2 March 2010 Campaign Against Arms Trade and The Corner House were successful in gaining a High Court injunction on the Serious Fraud Office's settlement with BAE Systems. The High Court may order a full review of the settlement.
BAE Systems (and British Aerospace previously) has long been the subject of allegations of bribery in relation to its business in Saudi Arabia. The UK National Audit Office (NAO) investigated the Al Yamamah contracts and has so far not published its conclusions, the only NAO report ever to be withheld. The MOD has stated "The report remains sensitive. Disclosure would harm both international relations and the UK's commercial interests." The company has been accused of maintaining a £60 million Saudi slush fund and was the subject of an investigation by the Serious Fraud Office (SFO). However, on 14 December 2006 it was announced that the SFO was "discontinuing" its investigation into the company. It stated that representations to its Director and the Attorney General Lord Goldsmith had led to the conclusion that the wider public interest "to safeguard national and international security" outweighed any potential benefits of further investigation. The termination of the investigation has been controversial. In June 2007, the BBC's Panorama alleged BAE Systems "paid hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan" in return for his role in the Al Yamamah deals. In late June 2007 the United States Department of Justice (DOJ) began a formal investigation into BAE's compliance with anti-corruption laws. On 19 May 2008 BAE Systems confirmed that its CEO Mike Turner and non-executive director Nigel Rudd had been detained "for about 20 minutes" at two US airports the previous week and that the DOJ had issued "a number of additional subpoenas in the US to employees of BAE Systems plc and BAE Systems Inc as part of its ongoing investigation". The Times suggested that such "humiliating behaviour by the DOJ" is unusual toward a company that is co-operating fully.
A judicial review of the decision by the SFO to drop the investigation was granted on 9 November 2007. On 10 April 2008 the High Court ruled that the SFO "acted unlawfully" by dropping its investigation. The Times described the ruling as "one of the most strongly worded judicial attacks on government action" which condemned how "ministers 'buckled' to 'blatant threats' that Saudi cooperation in the fight against terror would end unless the ...investigation was dropped." On 24 April the SFO was granted leave to appeal to the House of Lords against the ruling. There was a two-day hearing before the Lords on 7 and 8 July 2008. On 30 July the House of Lords unanimously overturned the High Court ruling, stating that the decision to discontinue the investigation was lawful.
In September 2005 The Guardian reported that banking records showed that BAE Systems paid £1 million to Augusto Pinochet, the former Chilean dictator. The Guardian has also reported that "clandestine arms deals" have been under investigation in Chile and the UK since 2003 and that British Aerospace and BAE Systems made a number of payments to Pinochet advisers. In 2003, HMS Sheffield was sold to the Chilean Navy for £27 million, however the government's profit from the sale was £3 million, after contracts worth £24 million were placed with BAE Systems for upgrade and refurbishment of the ship.
BAE Systems is alleged to have paid "secret offshore commissions" of over £7 million to secure the sale of HMS London and HMS Coventry to the Romanian Navy. The company received a £116 million contract for the refurbishment of the ships prior to delivery; however the British taxpayer only received the scrap value of £100,000 each from the sale.
BAE Systems ran into controversy in 2002 over the abnormally high cost of a radar system sold to Tanzania. The sale was criticised by several opposition MPs and the World Bank; Secretary of State for International Development Clare Short declared that BAE Systems had "ripped off" developing nations. In December 2010, leaked US diplomatic communications revealed that Edward Hoseah, the Tanzanian prosecutor investigating misconduct by BAE Systems, had confided in US diplomats that "his life may be in danger" and was being routinely threatened.
In January 2007, details of an investigation by the Serious Fraud Office into BAE Systems' sales tactics in regard to South Africa were reported, highlighting the £2.3 billion deal to supply Hawk trainers and Gripen fighters as suspect. In May 2011, as allegations of bribery behind South Africa's Gripen procurement continued, the company's partner Saab AB issued strong denials of any illicit payments being made; however in June 2011 Saab announced that BAE Systems had made unaccounted payments of roughly $3.5 million to a consultant, this revelation prompted South African Opposition parties to call for a renewed inquiry. The Gripen's procurement by the Czech Republic was also under investigation by the Serious Fraud Office in 2006 over allegations of bribery.
In September 2003 The Sunday Times reported that BAE Systems had hired a private security contractor to collate information about individuals working at the Campaign Against Arms Trade and their activities. In February 2007, it again obtained private confidential information from CAAT.
- Human rights records
Like many arms manufacturers, BAE Systems has received criticism from various human rights and anti-arms trade organisations due to the human rights records of governments to which it has sold equipment. These include Indonesia, Saudi Arabia, and Zimbabwe.
- Nuclear weapons
In 2006, BAE Systems was excluded from the portfolio of the government pension fund of Norway "because they develop and/or produce central components for nuclear weapons". "According to the ethical guidelines for the Government Pension Fund – Global, companies that produce weapons that through normal use may violate fundamental humanitarian principles shall be excluded from the fund." BAE Systems is indirectly engaged in production of nuclear weapons – through its 37.5% share of MBDA it is involved with the production and support of the ASMP missile, an air-launched nuclear missile which forms part of the French nuclear deterrent. The company is also the UK's only nuclear submarine manufacturer and thus produces a key element of the UK's nuclear weapons capability.
- Cluster bombs
BAE Systems has in recent times been criticised for its role in the production of cluster bombs, due to the long term risk for injury or death to civilians. However, after pressure campaigns from various human rights groups, BAE Systems recently stated it no longer produces land mines or cluster bombs.
- Aerospace industry in the United Kingdom
- European Union defence procurement
- Top 100 US Federal Contractors
- "BAE Systems: Preliminary Results 2012". Retrieved 16 March 2013.
- "About us". baesystems.com. BAE Systems. 2008. Archived from the original on 21 April 2008. Retrieved 22 April 2008.
- Sedghi, Ami. "who are the world's 100 top arms producers?".
- Turpin, Andrew (4 March 2000). "BAE Eyes US Targets After Profit Rockets". The Scotsman (UK: The Scotsman Publications). p. 26.
- Dow, James (23 July 2004). "Edinburgh's first line of defence". The Scotsman (UK). Archived from the original on 15 August 2004. Retrieved 26 September 2007.
- "BAe and Thomson-CSF SA: A report on the proposed merger" (PDF). Competition Commission. 6 February 1991. Retrieved 8 December 2005.
- "The BAE Systems Lineage (click on Air tab)". BAE Systems Heritage. BAE Systems plc. Retrieved 13 September 2007.
- "1874 Guglielmo Marconi". BAE Systems Heritage. BAE Systems plc. Archived from the original on 21 April 2008. Retrieved 13 September 2007.
- "A new industry". connected-earth.com. Archived from the original on 3 May 2007. Retrieved 12 September 2007. "during the Second World War it developed the cavity magnetron for radar"
- "The companies involved, and the merger situations" (PDF). Competition Commission. 1989. Archived from the original on 26 September 2007. Retrieved 13 September 2007.
- Leadbeater, Chris (3 July 1990). "A marriage of convenience 'GEC and Siemens propose to create a major new European partnership. The acquisition of Plessey ... will be the springboard for further substantial expansion together.'". Financial Times.
- Cowe, Roger (4 July 1999). "Weinstock's £1bn finale". The Guardian (UK: Guardian Newspapers).
- "Deal reached on shipyard future". BBC News. 14 December 1999. Retrieved 13 September 2007.
- "GEC Completes Tracor Acquisition". Electronic News (Reed Business Information). 20 July 1998. Retrieved 27 October 2006.
- Rothman, Andrea; Landberg, Reed (15 June 1997). "Europe Defense Firms Feel Pressure to Unite". The Seattle Times. Retrieved 12 September 2007.
- "Business: The Company File: Defence merger on the radar". BBC News. 10 July 1998. Retrieved 15 September 2007.
- Jones, Adam (20 January 1999). "Europe cries foul as New BAe emerges". The Times (UK).
- Sparaco, Pierre; Morrocco, John D. (30 June 1997). "French Government Grapples With Aerospace Strategy". Aviation Week and Space Technology (The McGraw-Hill Companies).
- Gray, Bernard; Michael Skapinker (24 June 1997). "Giant waiting in the wings: Bernard Gray and Michael Skapinker ask if Europe's defence industry can consolidate in time to challenge US dominance". Financial Times.
- "BAe and Dasa discuss proposals for merger: Aerospace groups still have 'important issues to resolve'". Financial Times. 24 July 1998. p. 1.
- Spiegel, Peter (17 July 2004). "The largest aerospace companies gather next week for the Farnborough air show but the event will be without its long-time unofficial host". Financial Times. p. 11.
- Hotten, Russell (19 March 1996). "GEC confirms Simpson job". The Independent (UK: Newspaper Pub). p. 17.
- BAE Systems Annual Report 1999 22. BAE Systems plc (2000). Retrieved 27 October 2006.
- Nevill, Louise (4 January 1999). "BAe and Marconi moving toward merger". The Scotsman (UK: The Scotsman Publications). p. 17.
- "Speculation Rises on GEC Merger". The Scotsman (UK: The Scotsman Publications). 28 December 1998.
- "Getting it together?". The Economist (The Economist Newspaper). 20 July 2002.
- "UK. Releases BAE SYSTEMS From Undertakings For Marconi Electronic Merger". Defense Daily International. 9 February 2007.
- "BAE Systems Facts BAE SYSTEMS." BAE Systems. Retrieved 31 August 2011. "BAE SYSTEMS WARWICK HOUSE, FARNBOROUGH AEROSPACE CENTRE, FARNBOROUGH, HAMPSHIRE, GU14 6YU, UNITED KINGDOM" and "LONDON OFFICE: 6 CARLTON GARDENS, LONDON, SW1Y 5AD, UNITED KINGDOM"
- "BAE Systems Facts Location." BAE Systems. Retrieved 31 August 2011. "BAE SYSTEMS Warwick House, Farnborough Aerospace Centre, Farnborough, Hampshire, GU14 6YU, United Kingdom" and "BAE SYSTEMS 6 Carlton Gardens, London, SW1Y 5AD, United Kingdom"
- "BAE Systems 2000 Annual Report" (PDF). BAE Systems. p. 6. Archived from the original on 27 November 2007. Retrieved 5 October 2007.
- Spiegel, Peter (7 December 2004). "Oil or missiles, the constant is power". Financial Times.
- Spiegel, Peter (25 June 2005). "BAE prepares for increase land war spend". Financial Times.
- Robertson, David (15 January 2011). "BAE switches its focus from tanks and warships to cyber security". The Times.
- Odell, Mark (1 February 2003). "BAE agrees new deal for Astrium". Financial Times. p. 15.
- "EADS and BAE SYSTEMS complete Airbus integration – Airbus SAS formally established" (Press release). BAE Systems plc. 12 July 2001. Archived from the original on 20 October 2007. Retrieved 4 October 2007.
- Sparaco, Pierre (19 March 2001). "Climate Conducive For Airbus Consolidation". Aviation Week & Space Technology.
- "Acquisitions and Disposals". BAE Systems plc. Retrieved 22 December 2010.
- "BAE SYSTEMS closes the RJX Programme" (Press release). BAE Systems plc. 27 November 2001. Archived from the original on 20 October 2007. Retrieved 4 October 2007.
- "EADS, BAE and Finmeccanica Complete MBDA Merger". Defense Daily International. 21 December 2001. "the new MBDA, the world's second largest missile manufacturer behind Raytheon"
- "MBDA prepares for consolidation". Financial Times. 16 March 2006.
- Barrie, Douglas; Wall, Robert; Sparaco, Pierre (17 April 2006). "High-Stakes Gamble; BAE Systems bets future on defense, using its Airbus share as ante". Aviation Week & Space Technology.
- Odell, Mark (12 December 2002). "BAE warning sends share price to 7-year low: News of 'additional issues' on two big defence contracts takes market by surprise". Financial Times.
- Odell, Mark (20 February 2003). "Whitehall re-draws key BAE defence contracts". Financial Times.
- Done, Kevin (13 December 2002). "Nimrod refit turns into nightmare". Financial Times. p. 24.
- Evans, Michael; Benett, Rosemary (31 July 2003). "Cabinet battle over British jet contract". The Times (UK).
- Hotten, Russell (20 March 2004). "Protests loom over Hawk deal with India". The Times (UK: Times Newspapers).
- "BAE ties up £2.6bn Italian deal". BBC News. 3 June 2003. Retrieved 13 September 2007.
- Parmalee, Patricia J. (9 April 2007). "Selex Sale Sealed". Aviation Week & Space Technology (The McGraw-Hill Companies).
- "BAE shares rise after sales talk". BBC News. 26 April 2004. Retrieved 8 December 2005.
- Robertson, David (26 July 2007). "BAE-VT merger". The Times (London). Retrieved 7 September 2007.
- "Warship deal takes a step closer". BBC News. 1 July 2008.
- "BAE triumphs in tank firm battle". BBC News. 4 June 2004. Retrieved 13 September 2007.
- "BAE Systems to buy US rival UDI". BBC News. 7 March 2005. Retrieved 13 September 2007.
- Boxell, James (31 December 2005). "BAE forced into cut-price sale". Financial Times.
- "BAE sells Prestwick unit for £80m". BBC News. 31 January 2005. Archived from the original on 4 September 2007. Retrieved 7 September 2007.
- "Fears for future of BAE plant". BBC News. 14 October 2002. Retrieved 31 January 2006.
- "Saudi Arabia buys 72 Eurofighters". BBC News. 18 August 2006. Archived from the original on 20 August 2006. Retrieved 18 August 2006.
- Steiner, Rupert (10 September 2006). "BAE clinches new £2.5bn Tornado deal with Saudis". The Business.
- Baldwin, Tom (13 December 2006). "Britain in fighter deal with US". The Times (UK).
- Robertson, David (23 December 2006). "BAE emerges from the political storm with MoD Tornado contract". The Times (UK).
- "BAE Systems plc announces proposed acquisition of Armor Holdings Inc." (PDF) (Press release). BAE Systems plc. 7 May 2007. Archived from the original on 16 June 2007. Retrieved 7 May 2007.
- "BAE Systems completes acquisition of Armor Holdings Inc." (PDF) (Press release). BAE Systems plc. 31 July 2007. Archived from the original on 30 September 2007. Retrieved 7 September 2007.
- "Racing success as BAE Systems and Team McLaren Mercedes technology partnership celebrates 10 years" (DOC) (Press release). BAE Systems plc. 9 March 2006. Retrieved 25 March 2008.
- "2008 Ultimate Season Review". F1 Racing (Haymarket). March 2008. pp. 99–101.
- Robertson, David (28 June 2008). "Ian King takes over at BAE Systems and promises to raise standards". The Times (London). Retrieved 25 July 2008.
- "BAE in £2bn MoD ammunition deal". BBC News. 20 August 2008. Retrieved 6 December 2011.
- Costello, Miles (29 July 2008). "BAE makes agreed £531m cash offer for Detica". The Times (London). Retrieved 13 January 2009.
- Hubler, David (22 December 2010). "Purchase of Danish company expands BAE's cyber, intell capabilities". Washingtontechnology.com. Retrieved 6 December 2011.
- "BAE Systems announces recommended offer to acquire Norkom at". Baesystems.com. 14 January 2011. Retrieved 17 April 2011.
- Roland, Gribben (18 February 2010). "BAE takes £600m hit on lost trucks contract". Daily Telegraph (London). Retrieved 18 February 2010.
- Robertson, David (15 February 2009). "BAE Systems left licking its wounds on Armor Holdings acquisition". The Times (London). Retrieved 18 February 2009.
- "Preliminary Announcement and Presentation 2009". BAE Systems plc. 18 February 2010. Archived from the original on 31 March 2010. Retrieved 19 February 2010.
- Pfeifer, Sylvia (19 February 2010). Financial Times http://www.ft.com/cms/s/0/ff34c7c0-1cf5-11df-aef7-00144feab49a.html
|url=missing title (help). Retrieved 22 February 2010.
- "BAE Systems 2005 Annual Report" (PDF). BAE Systems. p. 36. Retrieved 13 March 2006.
- Robertson, David (5 March 2010). "BAE cuts links to Saab and ill-fated fighter". The Times (London). Retrieved 19 March 2010.
- "BAE Systems, M&M announce land system-focused defence JV". The Financial Express. 9 February 2010. Retrieved 22 December 2010.
- Hoyos, Carola (11 September 2010). "BAE prepares to streamline US business". The Financial Times (London).
- Buck, Jon (11 January 2011). "BAE Drops Asset Sale Plan". Wall Street Journal.
- "Securing Britain in an Age of Uncertainty: The Strategic Defence and Security Review". HM Government. 19 October 2010. Retrieved 19 October 2010.
- "BAE Systems Sells Leasing Business, Regional Aircraft Portfolio". Aviation Week. 27 May 2011. Retrieved 31 January 2012.
- "BAE Systems job cuts: Consultation period due to start". BBC News. 28 September 2011.
- "Falling Armaments Demand Hits BAE Profits". Armed Forces International. 2 August 2012.
- "CONTRACT AWARDED TO ENHANCE ROYAL SAUDI AIR FORCE TRAINING CAPABILITY". BAE Systems. Retrieved 8 August 2012.
- "BAE Systems wins £2.5bn Oman Hawk and Typhoon contract". BBC News. 21 December 2012.
- "BAE Systems shares shed gains after EADS merger talk". BBC. 13 September 2012. Retrieved 13 September 2012.
- Snyder, Jim; Ray, Susanna (13 September 2012). "Boeing Says EADS Seeking U.S. Growth With BAE Merger". Bloomberg.
- "BAE-EADS merger cancelled amid political impasse". BBC. 10 October 2012. Retrieved 10 October 2012.
- Spiegel, Peter (7 September 2005). "BAE denies Airbus sale plans". Financial Times.
- "BAE confirms possible Airbus sale". BBC News. 7 April 2006. Retrieved 12 August 2006.
- Gow, David (3 July 2006). "BAE under pressure to hold Airbus stake". The Guardian (London: Guardian Newspapers). Retrieved 3 July 2006.
- "BAE Systems says completed sale of Airbus stake to EADS". Forbes. 13 October 2006. Archived from the original on 4 June 2011. Retrieved 13 October 2006.[dead link]
- "Airbus in UK". Airbus. Archived from the original on 12 October 2007. Retrieved 5 October 2007.
- The SIPRI Top 100 arms-producing companies, 2008 Stockholm International Peace Research Institute, 12 April 2010. Retrieved 2 May 2010.
- "Defense News Top 100 for 2008". defensenews.com. Army Times Publishing Company. 2008. Retrieved 26 February 2010.[dead link]
- "Royal Air Force Aircraft & Weapons" (PDF). Royal Air Force. pp. 6–15. Archived from the original on 16 June 2007. Retrieved 12 February 2007.
- "F-35 Joint Strike Fighter (JSF) BAE Systems". GlobalSecurity.org. 2006. Archived from the original on 20 February 2007. Retrieved 12 February 2007.
- "Military trainers review: BAE Systems". Flight International (Reed Business Information). 20 March 2007. Retrieved 22 March 2007.
- Bowler, Tim (20 July 2006). "BAE spyplane eyes commercial sector". BBC News. Retrieved 25 July 2008.
- Mathieson, SA (1 December 2010). "MoD top 100 suppliers: How you each gave BAE Systems £64 last year". The Guardian (London). Archived from the original on 22 January 2011. Retrieved 16 December 2010.
- "The economic contribution of BAE Systems to the UK and implications for defence procurement strategy" (PDF). Oxford Economic Forecasting. January 2004. p. 51. Archived from the original on 2 January 2007. Retrieved 13 January 2007.
- Jameson, Angela (27 February 2006). "BAE Systems chief reaps reward for years of fighting for revival". The Times (London). Retrieved 9 November 2006.
- Dr Steven Schofield (March 2006). "The UK Defence Industrial Strategy and Alternative Approaches" (PDF). Basic Papers: Occasional Papers on International Security Policy. p. 5. Archived from the original on 8 November 2006. Retrieved 9 November 2006.
- Warwick, Graham (6 June 2004). "Best of British; For years BAE Systems' identity was British, but with its investment in foreign markets increasing, change is just around the corner". Flight International (Reed Elsevier Inc.). p. 48.
- "BAE Systems: Changing places". The Economist (The Economist Newspaper). 26 October 2006. Archived from the original on 15 November 2006. Retrieved 9 November 2006.
- "The FLAVIIR project". Flaviir.com. Retrieved 17 April 2011.
- Barrie, Douglas (7 December 2005). "British Defense Industrial Strategy Secures BAE Systems as UK. Champion". Aviation Week & Space Technology (The McGraw-Hill Companies). Retrieved 9 November 2006.
- "New Deal for UK Industry". Interavia (684): 10–17. Summer 2006. ISSN 1423-3215.
- "BAE Systems". BBC News. 22 May 2012. Retrieved 24 May 2012.
- "BAE to cut 1,775 shipbuilding jobs". Descrier. 6 November 2013. Retrieved 6 November 2013.
- Robertson, David (10 August 2007). "Milestone for BAE as its trade with America outstrips MoD business". The Times (London). Retrieved 7 September 2007.
- Schneider, Greg (7 November 2000). "Arms Across the Atlantic; A Yank Leads the Former British Aerospace To the Top Tier of U.S. Defense Contractors". The Washington Post.
- Boxell, James (8 May 2007). "Armor opens Pentagon door for BAE". Financial Times.
- Speigel, Peter (3 February 2004). "Boeing head rejects tie-up with BAE: New chief executive of US aerospace group says UK defence contractor is 'not an attractive target'". Financial Times.
- Perrett, Bradley (2 July 2008). "BAE completes acquisition of Tenix Defense". Aerospace Daily & Defense (The McGraw-Hill Companies).
- Robertson, David (18 September 2007). "Eurofighters head towards Saudi Arabia as BAE completes £4.4bn order". The Times (London). Retrieved 26 September 2007.
- BAE Systems PLC (LSE:BA.) - Major Shareholders | Forecasts & Deals | Company Search | Simply Stockbrokers. Lt.hemscott.com. Retrieved on 2013-08-16.
- "Company Info." BAE Systems. Retrieved 31 August 2011. "Registered office 6 Carlton Gardens, London, SW1Y 5AD, United Kingdom"
- "London > BAE Systems plc." BAE Systems. Retrieved 31 August 2011. "BAE Systems plc Address London – Stirling Square Carlton Gardens London SW1Y 5AD United Kingdom "
- "Head Office." BAE Systems. Retrieved 31 August 2011. "As you might expect, our London Head Office is the base for our Executive Board and for other senior group managers in strategic roles." and "Head Office is located in Central London but also has a number of support functions and functional specialists based in Farnborough, Hampshire."
- Eurofighter GmbH Organisation, Eurofighter GmbH
- "Our Organisation". baesystems.com. BAE Systems plc. Retrieved 1 February 2012.
- "Leadership". Leadership. BAE Systems plc. 2008. Archived from the original on 1 March 2009. Retrieved 12 March 2009.
- Wachman, Richard (21 March 2002). "A very British coup at BAE". The Observer (London: Guardian Newspapers). Retrieved 27 October 2006.
- Watson, Ian (7 April 2002). "Weston is blown away in shoot out at Dukes Hotel". The Business (Sunday Business Group). p. 10.
- Northedge, Richard (7 July 2002). "Turner Gets Ready For War". The Business.
- Morgan, Oliver (4 July 2005). "BAE's Olver demands 'root and branch' change". The Guardian (London: Guardian Newspapers). Retrieved 8 December 2005.
- Hope, Christopher (14 June 2005). "BAE chief admits clashing with chairman over Europe". The Daily Telegraph (London). Retrieved 5 December 2005.
- Costello, Miles (16 October 2007). "Mike Turner abruptly quits as BAE's chief". The Times (London). Retrieved 16 October 2007.
- Fidler, Stephen (28 June 2008). "BAE's search for successor to Turner ends in its own backyard". Financial Times.
- "BAE Systems: Preliminary Results 2011". Retrieved 24 March 2012.
- "BAE Systems 2008 Preliminary results" (PDF). BAE Systems. 19 February 2009. p. 1. Archived from the original on 18 March 2009. Retrieved 7 March 2009.
- BAE Systems 2002 Annual Report p.76 BAE Systems. Retrieved 1 March 2007.
- Allen, Paddy (1 October 2009). "Seven countries where BAE have been undec investigated – Bribing for Britain?". The Guardian (London). Archived from the original on 4 October 2009. Retrieved 24 October 2009.
- Leigh, David (12 October 2009). "BAE bribery case: MP urges Gordon Brown to intervene". The Guardian (London). Archived from the original on 15 October 2009. Retrieved 24 October 2009.
- "BAE in several corruption probes". BBC. 7 February 2007. Archived from the original on 19 February 2007. Retrieved 15 February 2007.
- "Corporate Responsibility Report 2006" (PDF). BAE Systems plc. Retrieved 7 September 2007.
- "Lord Woolf to head BAE's review". BBC News. 11 June 2007. Retrieved 12 March 2009.
- "BAE review seeks bribery controls". BBC News. 6 May 2008. Retrieved 12 March 2009.
- Leigh, David (1 October 2009). "SFO seeks BAE prosecution over bribery claims". The Guardian (UK). Archived from the original on 4 October 2009. Retrieved 1 October 2009.
- "BAE Systems handed £286m criminal fines in UK and US". BBC. 5 February 2010. Archived from the original on 8 February 2010. Retrieved 5 February 2010.
- "BAE Systems to pay $400M fine". CNN. 2 March 2010. Archived from the original on 3 March 2010. Retrieved 5 March 2010.
- "BAE Systems PLC Pleads Guilty and Ordered to Pay $400 Million Criminal Fine". US Department of Justice press release (Washington, DC). 1 March 2010. Archived from the original on 28 November 2010. Retrieved 18 December 2010.
- Alistair Dawber (3 March 2010). "BAE protesters win SFO injunction". The Independent (UK). Retrieved 14 June 2010.
- Leigh, David (6 February 2010). "BAE admits guilt over corrupt arms deals". The Guardian (UK). Archived from the original on 9 February 2010. Retrieved 20 February 2010.
- 'BAE deal with SFO on hold after High Court injunction' BBC News 2 March 2010
- Burrows, Gideon (8 August 2003). "Out of arms way". The Guardian (London: Guardian Newspapers). Retrieved 1 October 2007.
- Leigh, David; Evans, Rob (25 July 2006). "Parliamentary auditor hampers police inquiry into arms deal". The Guardian (London: Guardian Newspapers). Retrieved 12 August 2006.
- "Saudi defence deal probe ditched". BBC News. 15 December 2006. Archived from the original on 9 February 2007. Retrieved 2 March 2007.
- "'Great damage' of BAE deal ruling". BBC News. 1 February 2007. Archived from the original on 3 February 2007. Retrieved 2 February 2007.
- "Saudi prince 'received arms cash'". BBC News. 7 June 2007. Archived from the original on 7 October 2007. Retrieved 8 September 2007.
- Robertson, David; Baldwin, Tom (27 June 2007). "US Justice Department to scrutinise BAE's Saudi deals". The Times (London). Retrieved 7 September 2007.
- Jagger, Suzy (19 May 2008). "BAE accused of being uncooperative with US investigators". The Times (London). Retrieved 19 May 2008.
- "Court to study BAE fraud decision". BBC News. 9 November 2007. Archived from the original on 11 November 2007. Retrieved 4 December 2007.
- "SFO unlawful in ending BAE probe". BBC News. 10 April 2008. Archived from the original on 15 April 2008. Retrieved 18 April 2008.
- Gibb, Frances; Webster, Philip (11 April 2008). "High Court rules that the halt to BAE investigation was 'unlawful, a threat to British justice'". The Times (London). Retrieved 27 April 2008.
- "SFO allowed to contest BAE ruling". BBC News. 24 April 2008. Archived from the original on 29 April 2008. Retrieved 24 April 2008.
- Evans, Rob; Leigh, David (9 July 2008). "Government 'did not try' to fend off Saudi inquiry threats". The Guardian (London: Guardian Newspapers). Archived from the original on 12 July 2008. Retrieved 25 July 2008.
- "Lords overturn Saudi probe ruling". BBC News. 30 July 2008. Archived from the original on 31 July 2008. Retrieved 30 July 2008.
- Leigh, David; Evans, Rob (15 September 2005). "Revealed: BAE's secret £1m to Pinochet". The Guardian (UK: Guardian Newspapers). Retrieved 27 October 2006.
- Franklin, Jonathan (12 July 2006). "Pinochet and son deny selling cocaine to Europe and US". The Guardian (London: Guardian Newspapers). Retrieved 14 August 2006.
- "FAQ: The investigation". The Guardian (London: Guardian Newspapers). 29 November 2006. Retrieved 16 November 2007.
- Leigh, David; Evans, Rob (15 July 2006). "Bribery inquiry may force £7m refund to Romania". The Guardian (London: Guardian Newspapers). Retrieved 14 August 2006.
- David Leigh and Rob Evans, "We paid three times too much for UK frigates, Romania says", The Guardian, 13 June 2006.
- "Tanzania could seek radar refund". BBC News. 2 February 2007. Archived from the original on 12 February 2007. Retrieved 19 February 2007.
- Leigh, David (19 December 2010). "WikiLeaks cables: Tanzania official investigating BAE 'fears for his life'". The Guardian (UK).
- "Tanzania radar sale 'waste of cash'". BBC News. 14 June 2002. Retrieved 19 February 2007.
- "BAE Systems faces bribery charges". BBC News, 1 October 2009.
- Short, Clare (1 October 2009). "BAE's government-backed rip-off". The Guardian (UK). Archived from the original on 4 October 2009. Retrieved 1 October 2009.
- Plaut, Martin (12 January 2007). "BAE South African deal 'probed'". BBC News. Archived from the original on 16 January 2007. Retrieved 12 January 2007.
- Zander, Christina. "Saab Denies South African Bribe Claim". The Wall Street Journal. 20 May 2011.
- "Call for new South African arms deal investigation." BBC News, 17 June 2011.
- "How the woman at No 27 ran spy network for an arms firm". The Sunday Times (UK: Times Newspapers). 28 September 2003. p. 10.
- Thomas, Mark (4 December 2007). "Martin and me". The Guardian (London: Guardian Newspapers). Retrieved 4 December 2007.
- Monbiot, George (13 February 2007). "The parallel universe of BAE: covert, dangerous and beyond the rule of law". The Guardian (London: Guardian Newspapers). Retrieved 4 December 2007.
- "Security experts admit China stole secret fighter jet plans." The Australian. 12 March 2012.
- "BAE Systems : Corporate Crimes". Corporate Watch. Archived from the original on 25 July 2011. Retrieved 19 August 2011.
- "The International Arms Trade to Indonesia". The Guardian (London). 9 September 1999. Retrieved 19 August 2011.
- "Saudi Arabia buys 72 Eurofighters". BBC. 18 August 2006. Retrieved 19 August 2011.
- "Exclusions from the Government Pension Fund – Global" (Press release). Norway Ministry of Finance. Retrieved 7 September 2007.
- "Corporate Responsibility Panel" (PDF). Retrieved 17 April 2011.
|Wikimedia Commons has media related to BAE Systems.|
- BAE Systems web site
- BAE Systems YouTube channel
- BAE Systems newsroom
- The Guardian: The BAE files
- BAE Systems profile on corporatewatch.org.uk
- Black Money PBS Frontline documentary examining BAE's alleged use of political corruption internationally, to secure arms sales
- BAE Systems plc Information on againstcorruption.org