BAE back to profit but sees 2011 hurt by UK cuts
Thursday, February 17, 2011
LONDON (AP) — Defense contractor BAE Systems has bounced back into profit for the full year but expects revenues to decline this year as the British government reins in spending.
BAE reported a profit of 1.05 billion pounds ($1.69 billion) for the year, compared with a loss of 67 million pounds in 2009, when the company took nearly a billion pounds in impairment charges after losing a major U.S. contract.
Revenue rose 1.8 percent to 22.4 billion pounds, with 51 percent of that amount derived from the United States. Operating profit was 1.6 billion pounds, up from 966 million pounds a year earlier.
Anticipating customer spending cuts, BAE says it has shed 15,100 employees in the past two years.
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