anyway back on topic
Can't post from grauniad for some reason.
Arms maker BAE Systems makes record profit amid Ukraine and Israel-Gaza wars
FTSE 100 company says global instability is making government focus on defence spending
Jasper Jolly and agencies
Wed 21 Feb 2024 10.33 GMT
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Increased military spending prompted by Russia’s war on Ukraine and the Israel-Gaza conflict helped the British weapons manufacturer BAE Systems to record profits last year, with further growth expected in the year ahead.
The FTSE 100 company made underlying profits before interest and tax of £2.7bn on record sales of £25.3bn in 2023.
Shares in weapons manufacturers have surged in the past two years after Russia’s full-scale invasion of Ukraine in February 2022 made governments reassess their plans for military spending.
There have also been increased tensions across the Middle East since 7 October, when Hamas, which runs Gaza, killed 1,139 people in an assault on Israel. Israel has responded with months of bombardment of Gaza, killing nearly 30,000 Palestinians.
BAE Systems’ sprawling interests include building nuclear submarines and fighter jets, tanks and ships, as well as guns and ammunition.
Charles Woodburn, the BAE chief executive, said the weapons manufacturer was expecting “sustained growth in the coming years”.
“Instability in Europe, the Middle East and other parts of the world brings into sharp focus the vital role that we play in protecting national security,” he told reporters on Wednesday.
“While most of our order volume was driven by existing programme positions that predate the Ukraine conflict, orders to restock and upgrade heavy armour and munitions are starting to come through.”
Jarek Pominkiewicz, an equity research analyst at Quilter Cheviot, said BAE would benefit from a “growing recognition of the need to bolster defence spending”, particularly in eastern European and Baltic countries close to Russia’s borders.
BAE’s share price dropped by more than 3% on Wednesday morning because margins were slightly lower than expected, but remain close to record highs, valuing the company at almost £38bn. Its shares have more than doubled in value since February 2022.
https:// www. the guardian .com /business/2024/feb/21/bae-systems-profit-ukraine-israel-gaza-wars-ftse-100