Aerospace giant BAE Systems has insisted its future looks bright - despite the terror attacks of September 11.

The company, which employs around 1,400 people in Basildon, saw its pre-tax profits fall from £179m to £70m in 2001.

This was partly due to the restructuring of its commercial aviation division, forced by the downturn in the aviation industry that followed the attacks.

However, the company's underlying performance remains strong. Before deductions, its profits were £1,260m, 32.6 per cent up on 2000, while its order book was £43.8bn, up 6.8 per cent.

The company's avionics group, which has its headquarters in Christopher Martin Lane, Basildon, reported a slight fall in sales, from £1,133m to £1,027m. But profits were slightly up, from £107m to £109m.

The company believes that 2002 is likely to remain difficult, with the continuing downturn in the commercial aircraft market likely to keep on putting pressure on profits.

But growth is expected to pick up again in 2003, thanks to improved performance from defence activities and a stabilised position at Airbus, in which BAE Systems has a 20 per cent stake.

BAE Systems chairman Sir Richard Evans said: "2001 has been a transitional year in the company's development."

Published Tuesday, February 19, 2002