BAE profits expected to rise with Saudi contract

2012-05-28

A $2.5 billion training contract has been made between BAE and Saudi Arabia's air force.

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With Western defence powers cutting back, BAE is hoping to reap the benefits of doing business in the Middle East.

In a major deal for BAE, Europe's largest defence contractor, the US$2.5 billion training contract will involve the sale of 22 BAE Hawk advanced jet trainer aircraft and 55 Pilatus turboprop PC-21 aircraft.

BAE, which has been negotiating the contract for months, will be expected to provide training equipment and support services to the Saudi Airforce, which has recently been bolstered.

BAE profits slowed last year with final figures for 2010 coming in at US$40 billion, compared to US$50 billion in 2009.

Source: Europe News.Net