BAE counting on UK defence spending as profits fall
BAE Systems announced a drop in annual net profit on 22 February but said it expected government defence spending to remain a priority.
Profit after tax dropped 6.5% to £854 million in 2017 compared with a year earlier, with the group hit by a sizeable impairment linked to its cyber security unit, BAE said in an earnings statement.
Group revenue meanwhile grew 3% to £18.32 billion.
Charles Woodburn, chief executive, BAE Systems, said: ‘With an improving outlook for defence budgets in a number of our markets, we are well placed to generate good returns for shareholders.’
Late in 2017, BAE said it planned to axe 2,000 jobs, mainly owing to weaker demand for Hawk and Eurofighter Typhoon fighter jets.
On 22 February, BAE said that ‘defence and security remains a priority for the UK government’.
More from Defence Notes
-
![UK Chancellor commits £2 billion to make the country a “defence industrial superpower”]()
UK Chancellor commits £2 billion to make the country a “defence industrial superpower”
Rachel Reeves announced port upgrades, protected budgets for innovation and investment in novel technologies.
-
![Avalon 2025: Australian defence budget meets the low expectations of show attendees]()
Avalon 2025: Australian defence budget meets the low expectations of show attendees
The Australian Budget was marked by tax cuts and a looming general election which led to little hope that there would be a substantial defence boost even with a big bill for nuclear submarines due.
-
![Launch of Gilat Defense targets DoD market]()
Launch of Gilat Defense targets DoD market
The communications company Gilat launched its new Gilat Defense division at the Satellite 2025 expo, with future solutions aimed at US military customers.
-
![Collins MAPS Gen II to equip US DoD watercraft]()
Collins MAPS Gen II to equip US DoD watercraft
US services have already conducted multiple tests with military maritime systems fitted with the system.
-
![OCCAR expects substantial boost in programme numbers “in the coming months”]()
OCCAR expects substantial boost in programme numbers “in the coming months”
Europe’s Organisation for Joint Armament Cooperation (OCCAR) “has to establish itself…as a centre of excellence for cooperative Defence Equipment Programmes” in the face of growing threats and the need for rearmament, according to the organisation’s chairman.
