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BAE Systems - A Leading International Provider of Defense and Military Products


BAE Systems

How BAE is 3rd Largest Defense Contractor:

BAE Systems is a multinational British aerospace company that specialized in defense and security applications. It is ranked as the 3rd largest defense contractor in the world based on revenue and is the 6th largest contractor for the US Department of Defense. BAE is headquartered in London and most of its business is conducted in the UK and United States, although it is considerably active in Australia, India, and Saudi Arabia. The company is now a publicly limited company that is traded on the London Stock Exchange. The current CEO is Ian King and the chairman is Sir Richard Olver. It was founded in November of 1999 when Marconi Electronic Systems and British Aerospace merged in a deal worth 7.7 billion Euros. Marconi Electronic Systems was a large defense subsidiary of General Electric Company while British Aerospace was a manufacturer of military aircraft and naval systems. As of 2012, the company has estimated annual revenue of 17.834 billion Euros, 1.630 billion Euros in operating income, and 1.079 billion in profit. It employs over 107,000 people and that operate under the following divisions: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Platforms & Services (UK), Platforms & Services (International), and Other (composed of head office activities). Its US based platforms & services division is comprised of BAE Systems Land & Armaments, among others. It’s UK naval shipbuilding businesses include Naval Ships, Submarines, and Maritime Services.

BAE Systems is currently involved in several major military projects, such as the design and production of the F-35 Lighting, the Eurofighter Typhoon, the Astute-class submarine, and Queen Elizabeth-class aircraft carriers. To understand how much of an impact that BAE Systems has in the arms trade, note that 95% of BAE System’s total sales were for the production of military equipment. It’s Typhoon and Tornado fighter jets on its product line are the most widely used aircraft in the Royal Air Force. In addition, its HAWK advanced jet and UAV drone programs are exported around the world. In the US, it produces the M2 and M3 Bradley tanks, the M113 armored personnel carrier, and plays a role in the US Navy’s Advanced Gun System.


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