Against the backdrop of tightening military budgets and a strong pound, Europe's largest defence contractor BAE Systems (BA.) turned in half-year operating profits of £689m. That's a fall of 8 per cent on the first half of 2013, though broadly in line with consensus estimates.
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Discount the foreign exchange effect and the picture is slightly brighter, with revenues flat on the 2013 interim. Management now believes that initial fears over the fall away in defence receipts were overdone. Some receipts linked to the Typhoon jet fighter have also been delayed until the second half of this year.