BAE Systems makes 'robust' start to the year

Defence giant BAE Systems says it has made a "robust" start to the year despite the coronavirus crisis.
The production line at BAE Systems WartonThe production line at BAE Systems Warton
The production line at BAE Systems Warton

Sales increased by four per cent to £9.9bn.

But underlying EBITA (Earnings before interest, taxes, and amortization) of £895m decreased by 11 per cent on a constant currency basis and excluding the impact of acquisitions.

The figure for the same period in 2019 was £999bn.

BAE Systems employs around 10,000 people in Lancashire at Warton and Samlesbury and makes the Eurofighter Typhoon, the Hawk and parts of the F-35.

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Chief Executive Charles Woodburn said: "We have delivered a robust performance in the first half of the year, thanks to the efforts of all of our employees.

"We started the year from a strong position and we have taken actions to enhance our resilience, ensuring we continued to deliver against our customer priorities, whilst keeping our employees safe.

"Assuming no significant COVID-19 resurgence, we expect a good second half to the year.

"Demand for our capabilities remains high and we recognise our role not only in supporting national security, but also in contributing to the economies of the countries in which we operate."

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BAE Systems made an operating profit up to June 30 of £808m, down from £896M in 2019.

Typhoon production is focused on sub-assembly and major unit build on BAE's Kuwait and Qatar programmes.

Three deliveries of major units under the Kuwait Typhoon contract occurred in the first half of the year and the Qatar Typhoon programme achieved key milestones ahead of schedule.

A BAE Systems Air spokesman added: "Throughout the pandemic, our priority has been keeping our employees safe whilst delivering on our commitments to deliver critical defence and security programmes to our customers.

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"At our Air sites, we have extensively reconfigured on-site facilities to enable social distancing and introduced enhanced cleaning regimes.

"Whilst a majority of employees continue to work remotely, a sizeable population has returned to site, operating under newly established safe systems of work.

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