BAE Systems first-half profits will come in 15% lower than last year as the coronavirus pandemic hit the defence giant.
The company, which makes Typhoon fighter jets and warships, said that demand for its defence products, which account for 90% of group revenues, remained strong but some manufacturing lines had been affected by disruption linked to the pandemic.
Having in April deferred its decision on its final dividend payment in relation to 2019, BAE said it would provide an update next month.
First half profits will be hit by reduced sales of its higher-margin commercial equipment, for example electronic systems for passenger jets.
The company warned that these commercial units, primarily based in the US, which also provide systems to buses and other means of transport, would all be impacted by weaker demand in the near-term.
At its shipyards and factories across Britain, 90% of employees were now back working, whether that was from home or on site, and its US facilities were also operating.
Productivity levels were affected during the pandemic as the company brought in protective safety measures and as a result of supply chain challenges.
