BAE Systems Information and Electronics Systems has been awarded a $77.4 million contract.
The contract is to procure 1,464 radio frequency countermeasures as well as the maintenance and repair of multi-function test stations in support of the F-35 aircraft for the Air Force, Navy, Marine Corps and Foreign Military Sales customers.
“Work is expected to be complete by September 2023. Fiscal 2018 aircraft procurement (Air Force) funds in the amount of $10.7 million; fiscal 2019 aircraft procurement (Air Force) funds in the amount of $7.8 million; fiscal 2020 aircraft procurement (Air Force) funds in the amount of $21.3 million; fiscal 2020 procurement ammunition (Navy and Marine Corps) funds in the amount of $15.2 million; and FMS funds in the amount of $22.2 million will be obligated at time of award.”
Recently, BAE said coronavirus had no material impact on the business during the first quarter of 2020. However, at the start of the second quarter it is seeing “more significant disruptions”.
“In response the group is implementing new cost saving measures, and has suspended the final 2019 dividend of 13.8p. An update on the payment will be provided at half year results on 30 July. BAE has access to a £2bn revolving credit facility. The first half of the year usually sees a working capital cash outflow – the group’s trying to offset this by optimising internal cash flow. The group’s also in discussions with key customers to ensure supply chains remain robust.”
A large portion of staff members are working from home.