BAE profits better than expected at £700m

Defence giant BAE Systems said today it continued to perform well despite continuing investigations into its business dealings.

Defence giant BAE Systems said today it continued to perform well despite continuing investigations into its business dealings.

BAE posted half-year results ahead of expectations, with underlying profits ahead by £100m (€148m) at £700m (€1bn) in the six months to June 30.

The company said it had successfully targeted the higher growth sectors of the US defence market, while the “high tempo” of military operations, including in Iraq and Afghanistan, boosted its land systems arm.

But the company added: “Corruption allegations continue to be made against the group.”

As well as a long-running investigation by the UK’s Serious Fraud Office into business in a number of markets, the company was told in June by the US Department of Justice that it had started a formal investigation relating to the group’s compliance with anti-corruption laws.

“Notwithstanding these investigations, BAE Systems is performing well and is committed to maintaining its focus on continued value generation and its drive to embed a high performance culture.”

The group recently asked the UK’s former lord chief justice, Lord Woolf, to chair an ethics committee to review the company’s policies and processes.

The move followed allegations about payments to a Saudi prince in connection with an export deal, which the firm has denied.

More in this section

Lunchtime News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up