Does the recent sale of its Inertial Products business signal a round of sell-offs by BAE Systems? A statement accompanying the move noted that the company’s strategy is to expand as a developer and integrator of systems and “de-emphasize its role as a components provider.”
BAE already derives 34 percent of its revenues from North America, where 27,000 employees produce an annual turnover of $5.6 billion. Of equal significance, the return on sales is 8.4 percent–the highest figure in all of BAE. The group’s CEO, Mike Turner, is fond of reminding UK and European government officials that the conditions for technology investment are so much more favorable to BAE on the other side of the Atlantic.