BAE to Buy Back Shares Despite Gloomy Outlook

LONDON—BAE Systems PLC Thursday stepped up its efforts to keep shareholders satisfied following the failure of its merger with European Aeronautic Defence & Space Co. last year by starting a new £1 billion ($1.52 billion) share-buyback program.
The U.K.'s biggest defense contractor also increased its 2012 dividend—up 3.7% to 19.5 pence a share—and said growth in new markets should offset the impact of shrinking military spending in the U.S. and Europe.
The moves came as the maker of Challenger tanks, Tornado jet fighters, Astute class submarines and Queen Elizabeth-class aircraft carriers reported a sharp fall in 2012 net profit and ...

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