BAE Systems PLC, Europe's largest defense contractor, says it made a profit in the first half of the year, reversing a loss in the same period a year ago, despite worries about cuts to national defense spending.
BAE on Thursday reported a net profit of 618 million pounds ($965 million) for the six months to June 30, compared with a loss of 82 million pounds a year earlier, when it booked big impairment charges on two US businesses and expenses related to currency movements. Revenue was up 9.3 percent to 10.6 billion pounds from 9.7 billion pounds.
BAE expects a "challenging trading environment" as governments cut costs to trim budgets. It says it is already carrying out its own cost reduction and efficiency program.