...Stable Financial Profile: BAE Systems plc achieved stable earnings margins in 1H14, despite a revenue decline of over 10% stemming from headwinds in most of its divisions. The Platforms and Services divisions (US as well as UK) in particular, saw material top-line declines chiefly as a result of lower land vehicle activity, although some of the revenue fall reflected internal asset transfers (UK Munitions business) and timing effects (Typhoon deliveries). Fitch Ratings expects full-year 2014 group revenue to be around 5% below that of 2013. Last-twelve-months' (LTM) funds from operations (FFO) to revenue at 30 June 2014 was 8.8%, compared to 9% in 2013, as the company continued its efforts to address its operational footprint. As gross and net debt levels were broadly stable at end-1H14, leverage metrics also remained relatively flat. Gross and net leverage were at 2.3x and 1.5x, respectively at end- 1H14, from 2.3x and 1.1x at end-2013. Fitch expects these ratios to remain at around 2x...
