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PRIVACY
Manufacturing

BAE Systems announces sales increase despite earnings dropping by 11%

The global defence, aerospace and security company described it as a 'robust performance' despite the Covid crisis

New measures to work through the coronavirus pandemic at BAE Systems in Brough.(Image: BAE Systems)

BAE Systems has announced a "robust" first half the year that included a 4% increase in sales, despite underlying earnings before tax dropping 11%.

Directors of the global defence, aerospace and security company declared an interim dividend of 13.8p per share for 2019 that will be paid in September, and an interim dividend of 9.4p per share for the first half of 2020.

The group, which has sites across the º£½ÇÊÓÆµ including in the North West, West Midlands, South West and Yorkshire, said in financial results released on Thursday that its focus had been on protecting the wellbeing of its employees, meeting customer priorities through "unique challenges" and preserving the business throughout the Covid-19 crisis.

Charles Woodburn, chief executive of BAE Systems, said: "We have delivered a robust performance in the first half of the year, thanks to the efforts of all of our employees.

"We started the year from a strong position and we have taken actions to enhance our resilience, ensuring we continued to deliver against our customer priorities, whilst keeping our employees safe.

"Assuming no significant COVID-19 resurgence, we expect a good second half to the year.

"Demand for our capabilities remains high and we recognise our role not only in supporting national security, but also in contributing to the economies of the countries in which we operate."

Sales increased by 4% to £9.9bn, with underlying earnings before tax decreasing by 11% to £895m. Operating profit to June 30 dropped to £808m from £896m during the same period in 2019.