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High hopes at BAE despite profit drop

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BAE said there is a "renewed spirit of optimism" within the business, despite posting a drop in profits.

Over the past six months, the defence giant has secured orders worth more than £4bn.

Sales to the six months ending June 30 were £8.45bn – up from £8.33bn in the same period last year.

However, underlying profits before tax were down, from £922m to £865m.

Chris Boardman, managing director of BAE's Military Air and Information (MAI) division, said: "We have several on-going campaigns for both Typhoon and Hawk and with each we have the support of the UK Government which is crucial if we are going to be successful.

"We are continuing to support the Enterprise Zone activity at Warton, Samlesbury and in Brough, which has already helped provide employment opportunities in the area and in the future will create many more jobs.

"It's testament to all our staff that we have managed to deliver on our commitments throughout this difficult period and managed to secure export orders."

It is almost two years since the company delivered the bombshell that it was slashing 899 jobs from its distinguished workforce in Brough.

The redundancy process, which began on September 27, 2011, formally ended in July this year.

The efforts of unions and MPs helped mitigate hundreds of jobs, with 21 compulsory redundancies and a further 360 workers leaving the company voluntarily.

However, union leaders described it as a "hollow victory", pointing out the site – and the region – still lost hundreds of skilled workers.

Following months of campaigning, in May last year BAE Systems finally had a change of heart about its intentions to end a 100-year manufacturing history at Brough.

Despite pushing ahead with its decision to move the Hawk assembly work to its Lancashire sites, the company agreed to bring work previously done under subcontract elsewhere back in-house.

It meant the site will now manufacture small assembly parts for all future Hawk orders, including those recently placed by Saudi Arabia and Oman, securing Brough's future until at least 2016.

Mr Boardman added: "On the back of the orders from the Kingdom of Saudi Arabia and Sultanate of Oman last year there is a renewed spirit of optimism in the business and a real focus on doing all we can do to secure more export orders.

"The Sultanate of Oman order for 12 Typhoon and 8 Hawk aircraft helps sustain 1,000s of jobs in the region gives us a stable base to build from and fits in with our strategy to make MAI a truly international business."


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High hopes at BAE despite profit drop


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