BAE announces boost in orders and reports on ethics progress

The group also reported, in respect of the May 2008 publication of the Lord Woolf (pictured) committee report on the group's ethical standards, that it had established a steering group to address 23 recommendations and developed a plan for their implementation within three years. A code of conduct had been launched in January 2009 to codify required standards of personal and business conduct. Current orders stand at £46.5 billion (2007 £38.6bn), although the weakening of sterling against the US dollar accounted for £5.9 billion of the increase. Reporting its financial results for 2008, BAE posted an 18% increase in sales to £18.5 billion (2007 £15.7bn), includes contributions from a number of newly acquired businesses. Bae said its growth was driven by high demand for armoured wheeled vehicles in the US, partially offset by a reduction in the UK businesses as a result of delays to the Typhoon fighter aircraft programme. US-led businesses accounted for 59% (2007 47%) of sales. Pre-tax earnings were up 31% to £1.9 billion (2007: £1.4bn). The group’s results statement said BAE had continued to make good progress during 2008 in addressing its strategy to deliver sustainable growth in shareholder value by being the premier global defence and aerospace company. It had performed well with organic growth in the US businesses benefiting from strong demand. With recent acquisitions, increased profitability was being achieved across the higher volume of business from good programme execution. Progress had been achieved through a focus on existing defence capabilities, the broadening to other domains such as the land systems sector and the substantial expansion of the business footprint across its markets. Activity was starting to increase in India as resources were committed to developing that market. BAE said it would continue to increase emphasis on maximising defence and security capabilities across the home markets in the US, UK, Saudi Arabia, Australia, Sweden and South Africa. In addition, it will look to expand where it sees opportunities to establish an industrial presence in new markets, such as India.