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BAE Systems's first-half net profits sink fifth on weak demand

At Farnborough, Prime Minister Theresa May announced a 2 billion pound programme for a brand new fighter jet concept called Tempest.


PTI 01 Aug 2018, 08:34 AM United Kingdom

British military equipment maker BAE Systems today said that first-half net profits sank almost a fifth on weak demand for Eurofighter Typhoon fighter jets.

Earnings after taxation slid 17 per cent to 471 million pounds (USD 618 million, 528 million euros) in the six months to the end of June, compared with 569 million pounds a year earlier, BAE said in a results statement.

Sales, meanwhile, dropped almost seven per cent to 8.8 billion pounds "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 pounds, with a total of 9.7 billion pounds 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 today added 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 last month, 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 pound programme for a brand new fighter jet concept 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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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