FMTV recompete

RNS Number : 1322Y

BAE SYSTEMS PLC

27 August 2009

 



BAE Systems - FMTV re-compete

BAE Systems has been notified by the US Department of Defense (DoD) that it has not been awarded a follow-on contract for production of vehicles under the Family of Medium Tactical Vehicles programme.

The full implications of this decision cannot be assessed until consultations with the DoD have been completed regarding their intentions to transition the programme to the new arrangements.

The Company's current contract will see production of FMTV vehicles through to the fourth quarter of 2010.

The Company's financial planning assumptions anticipate FMTV sales in each of 2009 and 2010 of approximately $2bn. It is not anticipated that this planned activity will be impacted by this decision. The Company had planned for FMTV sales to reduce to less than $1bn per annum from 2011 onwards.

The Company believes its proposal represented further improved value for the customer and at the same time served the best interests of shareholders. BAE Systems' bid for this next phase of the FMTV programme was based on the experience of producing approx 50,000 of these high quality military specification vehicles over a number of years. 

Issued by:

BAE Systems plc

London

 

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