LONDON (Middle East Eye) - British arms manufacturer BAE Systems has posted record profits for the year 2023, the firm announced in its latest annual earnings report, published on Wednesday.
BAE reported pre-tax profits of £2.7bn ($3.4bn) on sales of £25.3bn for the year ending December 2023.
The results come amid a big jump in the firm’s share price since the start of the war in Ukraine, with shares breaching the £1,200 threshold in February. They stood at around £600 when Russia, Ukraine war began in February 2022.
Charles Woodburn, BAE’s chief executive, cited rising instability across the world as a reason for increased defense spending.
BAE’s products include fighter jets, drones, submarines, military computer systems and ammunition.
While the conflict in Ukraine has been the biggest driver for defense spending in recent decades, the war on Gaza is also fuelling fears of a wider global conflict.
BAE’s rivals, including U.S. firm Lockheed Martin, have also posted strong profits in 2023, close to $7bn.
The threat of the wars in Ukraine and Gaza expanding to include western states is driving an increase in military spending in the West.