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BAE Systems profits drop £93m

BAE Systems
BAE Systems

BAE Systems has seen half-yearly revenues and profits fall in the six months to June, latest results reveal.

The results were posted as the company, which operates bases at Warton and Salmesbury, kick-started talks with the Australian government over its £20bn contract to build warships.

For the six months ended June 30, operating profit dropped 11 per cent to £792m, down from £885m for the same period in 2017.

Sales were down 3 per cent to £8.8bn over the period, which BAE said was due to lower production of Typhoon jets.

BAE’s shares were down 12.2p to 641p following the results.

Chief executive Charles Woodburn said: “We have made good progress in the first half, strengthening the outlook through significant wins on the Australian SEA 5000 and US Amphibious Combat Vehicle programmes. These, combined with the launch of the UK Combat Air Strategy, provide good momentum.

“With a large order book and a positive outlook for defence budgets in a number of key markets, we have a strong foundation to deliver growth and sustainable cashflow.”