BAE Systems half year profits to fall as coronavirus hits defence giant

BAE Systems first-half profits will come in 15% lower than last year as the coronavirus pandemic hit the defence giant.

The company, which makes Typhoon fighter jets and warships, said that demand for its defence products, which account for 90% of group revenues, remained strong but some manufacturing lines had been affected by disruption linked to the pandemic.

Having in April deferred its decision on its final dividend payment in relation to 2019, BAE said it would provide an update next month.

First half profits will be hit by reduced sales of its higher-margin commercial equipment, for example electronic systems for passenger jets.