Profits down at military equipment firm BAE Systems

British military equipment maker BAE Systems today said that first-half net profits sank almost a fifth on weak demand for Eurofighter Typhoon fighter jets.

Earnings after taxation slid 17 per cent to 471 million pound (USD 618 million, 528 million euros) in the six months to the end of June, compared with 569 million pound a year earlier, BAE said in a results statement.

Sales, meanwhile, dropped almost seven per cent to 8.8 billion pound "as a result of reduced Typhoon production activity", the group added.

The British company, which also makes Astute submarines, added however that its orders backlog increased to 39.7 billion pound, with a total of 9.7 billion pound of orders in the first half.

Eurofighter was developed by a European consortium that also comprises Italy's Leonardo (ex-Finmeccanica) and Franco-German civilian planemaker Airbus.

BAE Systems today added the group would have "good momentum in the second half and beyond" as a result of the British government's recently-unveiled combat air strategy.

Under the strategy, launched at the Farnborough Air Show last month, the UK government and the aerospace industry will jointly invest in next-generation combat air systems.

At Farnborough, Prime Minister Theresa May announced a 2 billion pound programme for a brand new fighter jet concept called Tempest.

The twin-engined Tempest aircraft will be operated manned or unmanned, and will boast cutting-edge features like laser-directed weapons and a virtual cockpit.

BAE is a member of the Team Tempest consortium alongside the UK government, Leonardo, European missile specialist MBDA and British engine maker Rolls-Royce.