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Fighter to drive BAE growth
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September 13, 2001: 6:52 a.m. ET
BAE expects growth to resume in 2002 on production of Eurofighter combat jet
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LONDON (CNN) - BAE Systems said profit rose four percent in the first half as the fifth-biggest defence contractor to the Pentagon cut cost and integrated acquisitions.
Britain's BAE Systems, Europe's biggest defence company, expects growth would resume in 2002 as it starts production Eurofighter combat jets.
The company's stock surged more than 11 percent to 345.5 pence in midday trade on the FTSE 100.
Pretax profits before one-time items in the six months to June 30 rose to £482 million ($705 million), or 10.2 pence a share, from £464 million, or 10p a share, in the year earlier period. Sales rose 11 percent to £6.3 billion.
Analysts polled by Reuters had forecast pretax profit before one-time items ranging from £405 million to £518 million.
Net profit plunged 72 percent to £23 million from £81 million in the first-half of 2000. The company said its order book stood at £45 billion at June 30, 2001, up 10 percent on a year ago period.
"The outlook for the year remains in line with our 2000 results and we expect growth to resume in 2002 as planned," Chairman Richard Evens said.
Chief Executive John Weston told Reuters that the main drivers of growth in 2002 would be production of the new Eurofighter Typhoon combat jet and organic growth at both its U.S. defence business and at commercial aircraft maker Airbus Industrie.
BAE, is part of the Eurofighter consortium including European aerospace group EADS and Italy's Finmeccanica, and owns 20 percent of European aircraft maker Airbus, for which it makes the wings.
The company, which in January issued a profits warning and one-off losses on its Nimrod maritime patrol aircraft contract, said talks with the Indian government on purchasing its Hawk combat jet trainer were at the "final stages" and were now focusing on services and conditions. 
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