QinetiQ to align US business with Trump's defense priorities
Jan 20 (Reuters) - British defence and security group QinetiQ QQ.L said on Tuesday it is aligning its U.S. business to the administration's priorities, after President Donald Trump's recent call for sweeping changes to America's defense industry.
Earlier this month, Trump called for a substantial increase in the U.S. military budget as well as blocking U.S. contractors from dividend payouts or share buybacks, intending to speed up weapons production.
QinetiQ operates in the U.S. through its Global Solutions division under which it offers services such as advanced sensing, surveillance, cyber and intelligence capabilities to U.S. and international defence customers.
It is currently restructuring its US business, which has been hit by operational and profitability challenges stemming from geopolitical uncertainty and shifting procurement cycles.
QinetiQ said it continues to expect organic revenue growth of about 3% and an operating margin of 11% for the full year. In its third quarter trading update, its order intake stood at 3 billion pounds ($4.03 billion), including the recent LTPA contract extension.
The group added that it is also right-sizing its Australia business and streamlining its UK operations.
($1 = 0.7440 pounds)
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