BAE Systems profit jumps as govts hike defence spend
Net profit grew two percent to GBP 969 million ($1.3 billion) in the six months to June 30 compared with one year earlier, BAE said in an earnings statement.
Sales grew nine percent to GBP 13.6 billion for the group whose military machines include fighter jets, missile launchers, nuclear submarines and tanks.
"Our teams have delivered another strong operational and financial performance in the first half of the year, giving us the confidence to upgrade our guidance," BAE chief executive Charles Woodburn said in the release.
"In this heightened global threat environment, we continue to deliver mission critical capabilities to armed forces around the world," he added.
NATO recently committed to spend five percent of annual output on defence by 2035, seen as vital to counter the threat from Russia and keep US President Donald Trump engaged with the alliance.
"This represents a significant increase from the previous benchmark of two percent of GDP," BAE noted Wednesday.
The company's share price fell 1.4 percent in London morning trade as some profit-taking set in after a surge of around 55 percent in the stock's value since the start of the year.
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