Continuing warfare in Iraq fuels BAE profits

Keeping the troops of UK and US forces, bogged down in the unending campaign to restore democracy in Iraq and Afghanistan, has helped boost the profits of the UK's largest defence equipment supplier, BAE Systems.

According to BAE, the "high tempo" of UK and US military operations was increasing demand for land systems to support the armed forces in the two countries, which had helped it achieve organic sales growth of 12 per cent during the period.

Sales at its Land & Armaments business, which includes everything from its Challenger tanks to ammunitions, rose 43 per cent.

The company has announced a pre-tax profit of £657 million, up from £378 million a year earlier even as it is facing an anti-corruption probe in the US for having allegedly paid bribes to secure armaments orders from Saudi Arabia, a charge it has denied.

The British government dropped a similar charge in the UK this March, for being detrimental to national security.