BAE Continues Trend of Strong Earnings

BAE Systems announced its results for the full year and they were very impressive. The Daily Telegraph writes that profits increased ninety-two percent over the year prior. The company was buoyed by large orders for its MRAP vehicles for the U.S. military and the weaker English currency. Sales in 2008 were over $25 billion with a backlog of almost $50 billion. BAE also had made some acquisitions recently that helped their bottom line. As we wrote earlier this month overall defense contractors had good years last year. This will continue as long as the U.S. defense budget remains strong and troops are committed to Afghanistan and Iraq. Eventually there will be downward pressure on the budget due to Obama and the Democrats in Congress looking for funds and the economic issues plaguing the world.