British military equipment maker BAE Systems said Wednesday that first-half net profits surged, boosted by rising government defence spending and the weak pound.
Net profits soared 36 percent to £555 million ($733 million, 620 million euros) in the six months to the end of June, compared with £408 million a year earlier, BAE said in a results statement.
Sales forged almost ten percent higher to stand at £9.565 billion.
"BAE Systems' performance in the first half was consistent with our expectations and guidance for the year," said chief executive Charles Woodburn.
"We have a sound platform for medium-term growth underpinned by a clear and consistent strategy."
He added: "With the expected improvement in the defence budget outlook in a number of our markets, the group is well placed to continue to generate good returns for shareholders."
Underlying profit — as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) — rose by 11 percent to £945 million.
However, stripping out the impact of currency fluctuations, EBITDA increased by five percent.
The British company, which makes Astute submarines and Eurofighter warplanes, has been buoyed by the weak pound which makes its exports more attractive for US buyers.
In Wednesday early morning deals, BAE shares rallied 2.8 percent to 624 pence, bucking a downward trend on the London stock market.
Sterling has slumped in value since the June 2016 referendum in favour of Britain leaving the European Union.
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