Profits down at military equipment firm BAE Systems
British military equipment maker BAE Systems said on 1 August that first-half net profits sank almost a fifth on weak demand for Eurofighter Typhoon fighter jets.
Earnings after taxation slid 17% to £471 million in the six months to the end of June, compared with £569 million a year earlier, BAE said in a results statement.
Sales meanwhile dropped almost 7% to £8.8 billion ‘as a result of reduced Typhoon production activity,’ the group added.
The British company, which also makes Astute submarines, added however that its orders backlog increased to £39.7 billion, with a total of £9.7 billion of orders in the first half.
Eurofighter was developed by a European consortium that also comprises Italy's Leonardo (ex-Finmeccanica) and Franco-German civilian planemaker Airbus.
BAE Systems added that the group would have ‘good momentum in the second half and beyond’ as a result of the British government's recently-unveiled combat air strategy.
Under the strategy, launched at the Farnborough Air Show in July 2018, the UK government and the aerospace industry will jointly invest in next-generation combat air systems.
At Farnborough, Prime Minister Theresa May announced a £2 billion programme for a brand new fighter jetconcept called Tempest.
The twin-engined Tempest aircraft will be operated manned or unmanned, and will boast cutting-edge features like laser-directed weapons and a virtual cockpit.
BAE is a member of the Team Tempest consortium alongside the UK government, Leonardo, European missile specialist MBDA and British engine maker Rolls-Royce.
You may also like
More from Defence Notes
-
![Spain unveils new multi-billion euro defence investment plan]()
Spain unveils new multi-billion euro defence investment plan
The new plan outlined how Spain would reach 2% of its GDP spend on defence by 2025, with €1.9 billion earmarked for new equipment acquisition with several land, naval and air platforms disclosed to be replaced or upgraded.
-
![New Zealand boosts defence spend to US$6.6 billion and vows increased closeness with Australia]()
New Zealand boosts defence spend to US$6.6 billion and vows increased closeness with Australia
This budget will be spent over the next four years and nearly doubles the country’s defence spending as part of GDP to 2%.
-
![UK Chancellor commits £2 billion to make the country a “defence industrial superpower”]()
UK Chancellor commits £2 billion to make the country a “defence industrial superpower”
Rachel Reeves announced port upgrades, protected budgets for innovation and investment in novel technologies.
-
![Avalon 2025: Australian defence budget meets the low expectations of show attendees]()
Avalon 2025: Australian defence budget meets the low expectations of show attendees
The Australian Budget was marked by tax cuts and a looming general election which led to little hope that there would be a substantial defence boost even with a big bill for nuclear submarines due.
-
![Launch of Gilat Defense targets DoD market]()
Launch of Gilat Defense targets DoD market
The communications company Gilat launched its new Gilat Defense division at the Satellite 2025 expo, with future solutions aimed at US military customers.
