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STOCKWATCH BAE Systems shares higher on increased profit, upbeat outlook

Shares in BAE Systems Plc were higher in early trade after Europe's biggest defence company posted a 26 percent rise in first-half earnings and said its full-year results would benefit from strong demand for armoured wheeled vehicles.

At 9.24 a.m., BAE Systems shares were up 9-1/2 pence at 459-1/2 pence, while the FTSE 100 was down 32.8 points at 5,379.1.

The firm said it made earnings before interest, tax and amortisation (EBITA) of 881 million pounds in the six months to June 30.

In reaction, Cazenove said the results were at the top end of the range of expectations, and maintained its 'outperform' rating.

The broker said there was scope for upgrades to earnings estimates.

brian.gorman@thomsonreuters.com btg/lam

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