BAE Systems swings into profit, prepares for defence cuts
British arms manufacturer BAE Systems on Thursday said it had swung back into profit during the first half of 2010 but warned of "challenging trading" ahead as governments slash defence spending.
BAE Systems recorded profit after tax totalling 618 million pounds (741 million euros, 965 million dollars) in the six months to June, the group said in an earnings statement.
The net figure compared with a loss of 82 million pounds during the first six months of 2009, which had been caused by a major write-down linked to BAE Systems' purchase of US military group Armor Holdings.
"The group anticipates a challenging trading environment as governments look for cost savings to address budgetary pressures and enhance value for money," the company said in its latest earnings statement.
"A substantial programme of cost reduction and efficiency improvements is already well underway within the group to address such issues. This cost reduction programme, including a net headcount reduction of 3,300 during the first half year, will be of sustained benefit to the group's performance.
"It will also enhance competitiveness and deliver further improved value for customers," BAE Systems added.
© 2010 AFP