LONDON: BAE Systems Plc said first-half earnings stuttered as Europe’s biggest defence company focused on cost control and expansion into non-military markets amid continued pressure on Western arms budgets.
Underlying earnings before interest, tax and amortisation were £800 million (US$1.25 billion), compared with £802 million a year earlier, London-based BAE said in a statement.
The maker of Astute submarines and the Bradley Fighting Vehicle said revenue that declined last year resumed growth, aided by the sale of enhanced equipment for the Eurofighter warplane and favourable exchange rates.
“With an anticipated trading bias to the second half of the year, the group remains on track to deliver sales growth,” said chief executive Ian King. He reiterated that fullyear underlying earnings per share should be “marginally higher” than in 2014.
BAE has responded to crimped military spending in Britain and US by targeting new export markets and commercial activities such as cybersecurity.
Adjusted earnings per share fell to 17.1 pence from 17.7 pence a year earlier.