BAE Systems’ solid start to the year

A Eurofighter Typhoon
A Eurofighter Typhoon
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Defence giant BAE Systems said today the company had “performed well” in the first six months of the year.

​Its half-yearly figures showed sales of £8,714 million – up from £8,472 million​ for the same period in 2015​.

Operating profit was £776 million, up from £700 million.

The planemaker employs around 10,000 people at its sites in Warton and Samlesbury.

Ian King, Chief Executive, said “In the first half of 2016, BAE Systems performed well. Despite economic and political uncertainties, governments in our major markets continue to prioritise national security, with strong demand for our capabilities.

“In the US, we are seeing encouraging signs of a return to growth in defence budgets and improved prospects for our core franchises. In the UK, the re​​sult of the EU referendum will lead to a period of uncertainty, but we do not anticipate any material near-term trading impact on our business.

“Our business benefits from a large order backlog, with established positions on long-term programmes in the US, UK, Saudi Arabia and Australia. We are well placed to maximise opportunities, deal with the challenges and continue to generate attractive shareholder returns.”

Chris Boardman, Managing Director at BAE Systems Military Air & Information, said: “In the first half of 2016 we have made good progress across a number of key programmes. In April we received welcome news that Kuwait has become the eighth nation to purchase Typhoon.

“During this period we have continued to expand the aircraft’s capabilities with integration of radar and weapons systems and we remain focused on securing further orders in export markets.

“The first appearance of the F-35 Lightning II in the UK earlier this month was a moment of great pride for the 1,500 BAE Systems employees working on the programme in the UK as well as the 500 supply chain companies involved in the programme across the country. We continue to make great progress on this significant global programme.”