BAE Systems boss poised for Barack military spending cuts (From Chorley Citizen)

BAE Systems boss poised for Barack military spending cuts

10:56am Wednesday 5th November 2008 in News By Andrew Greaves

Defence giants BAE Systems have revealed that they expect new US president Barack Obama to cut its military budget.

Democrat Mr Obama, who saw off the challenge of Republican candidate John McCain yesterday, has said he is keen to pull US troops from Iraq.

But, while that could mean a cut in spending on the military, BAE believes the US market is still strong.

A spokesman for the firm, which has bases at Warton and Samlesbury and employs thousands of people from across Lancashire, said: "We believe the US defence market remains a strong and attractive market within which to do business.

“Our large order book gives us a good deal of forward visibility and BAE System’s strategy has been to focus on areas of the US defence market that we believe offer good sustainability.

“Despite this strong business position in the US market the company’s plans are based on what we believe to be realistic assumptions for reduced growth in US defence spend."

More than 4,500 people, many of them from the Preston and South Ribble area, currently work at the two bases on multi-million pound contracts providing parts for the F-35 Lightning II which is sold to the US Air Force.