BAE Systems has reported a strong rise in profits.

Global defence company BAE Systems today (19 February) announced a strong performance in annual profits and a growth in sales.

Sales rose by 18% from £15.7 billion in 2007 to £18.5bn in 2008. Operating profit also grew from £1.2bn to 1.7bn over the year. Overall profit before tax was £2.37bn, up by 91% from £1.24bn in 2007.

BAE Systems expects further good growth in 2009, despite a predicted drop in the sales of land vehicles, due in part to the weakness of the sterling against the US dollar.

Ian King, CEO of BAE Systems, said: “We have a well balanced global business with a large order book, good forward visibility and a strong balance sheet.”

The company’s order book has grown from £38.6bn in 2007 to £46.5bn in 2008 and is expected strengthen even further 2009.

“From this robust base we look to the future with confidence as we continue to deliver value for our customers, employees and shareholders,” added Mr King.

In June 2008, BAE Systems acquired US-based MTC Technologies and Australian-based Tenix Defence.

BAE Systems is the third largest global defence company and employs 105,400 people worldwide.