Defence firm BAE posts 18% profits rise
Aerospace and defence group BAE Systems today said its key programmes business was stabilising as it unveiled an 18% rise in profits to £392m (€574.9m).
BAE said decisive actions taken in the past two years in the air and sea systems programmes for the British Ministry of Defence (MoD), which have faced uncertainty due to government budget cuts, supported its plans for future recovery of the division.
Improved contract terms with the MoD and a continued focus on management processes had resulted in an improved performance throughout the business, BAE said.
The programmes operation includes Eurofighter Typhoon aircraft and the group’s other big defence programmes – Nimrod aircraft upgrades and Astute submarines.
The group said today that the Nimrod and Astute programmes were on track and production deliveries of the first phase of Typhoon jets were now well under way, with 21 aircraft in service at the end of June.
Plans for the next phase of Typhoon development and subsequent tranches of production aircraft have been dogged by uncertainty due to MoD budget cuts.
BAE said today that negotiations with the MoD were continuing in addressing a number of complex issues including the future programme schedule and operating capability of the aircraft.
BAE designs and makes civil and military aircraft, surface ships, submarines and a range of defence products including guided weapons systems.
The group employs more than 90,000 people in 130 countries and generates annual sales of about £12bn (€17.6bn).
