BAE, Europe’s biggest defense company, Full-Year Profit Surges 94% on Iraq, Afghan Wars

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http://www.bloomberg.com/apps/news?pid=20601085&sid=aGwYQkd4P6sg&refer=europe

By Sabine Pirone

Feb. 19 (Bloomberg) -- BAE Systems Plc, Europe’s biggest defense company, said full-year profit rose 94 percent after wars in Iraq and Afghanistan spurred demand for its armored vehicles, battlefield radios and bullet-proof vests.

Net income increased to 1.75 billion pounds ($2.5 billion), or 49.5 pence a share, from 901 million pounds, or 26.4 pence, a year earlier, the London-based company said in a statement today. Analysts surveyed by Bloomberg had predicted a profit of 1.28 billion pounds.

Revenue rose 18 percent to 18.5 billion pounds as BAE reaped the benefits of U.S. purchases including Armor Holdings Inc., the largest producer of protection for Humvee troop transports, and United Defense Industries Inc., maker of the Bradley Fighting Vehicle. Earnings at the American units were also boosted by a stronger dollar.

“A further year of good growth is anticipated in 2009, despite a lower level of land vehicle sales,” BAE said in the statement. “In addition, the group’s trading results would be expected to benefit from a continued weakness of sterling against the U.S. dollar.”