BAE Systems reports profit slide

<p>Shares in BAE Systems have made gains despite the company’s disappointing profit news.</p>

UK aerospace giant BAE Systems has reported a slide in full-year profits, citing delays over a major contract with Saudi Arabia and the overall economic weakness of the international marketplace for its poor figures.

Pre-tax profits decreased by more than six per cent to £1.3 billion compared to the £1.4 billion reported last year.

Sales were also down from £19.1 billion to £17.8 billion for the year to December 31st 2012, while its order backlog rose by eight per cent to £42.4 billion.

BAE Systems has been under a great deal of pressure to develop its growth strategy after its merger deal with European defence giant EADS fell through late last year.

Nevertheless, the company's share price has rebounded on the London Stock Exchange this morning (February 21st).

At 08:55 GMT, BAE Systems shares rose by 3.4 per cent to 343.50p per unit.

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