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.
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