 There is a big demand for armoured vehicles for troops in conflict areas |
Demand for mine-protected armoured vehicles for US and UK troops in Iraq and Afghanistan has helped to lift profits at defence group BAE Systems. BAE made a pre-tax profit of �791m ($1.6bn) for the first six months of the year, up from �657m a year earlier. As chief executive Mike Turner prepares to stand down at the end of August, BAE lifted 2008 earnings expectations. The firm has been at the centre of a US anti-corruption probe over a Saudi arms deal. It has denied wrongdoing. Sales, which were up 12%, benefited from its US operations where it has expanded to take advantage of demand for vehicles that protect soldiers from explosive devices. Overall sales at BAE's Land & Armaments business, which includes everything from tanks to munitions, rose to �2.6bn from �1.2bn a year earlier. BAE is also hoping for major sales of the new Joint Strike Fighter, which it will be producing in partnership with Lockheed Martin and Northrop Grummann in the United States. The consortium was awarded the contract earlier this year against fierce opposition from rival Boeing. As previously announced, BAE chief operating officer Ian King will replace Mr Turner in September. He will be tasked with leading the firm as it faces an investigation by the US Department of Justice into allegations of bribery to win Saudi defence contracts. A similar investigation was halted in the UK over security fears.
| 
One-Minute World News 
E-mail this to a friend 
Printable version 
BBC News
Bookmark with:
What are these?