US defence bolsters BAE Systems

BAE Systems posted a 34% surge in profits today after a strong performance at its defence division in the United States.

BAE said operating profits for the first half of 2006 jumped from £488m (€721m) to £653m (€964.5m) as it benefited from last year’s acquisition of US defence group United Defense Industries.

The firm, which has agreed to sell its 20% stake in superjumbo maker Airbus, said the “good” results in the first half underpinned its positive outlook for the year.