BAE Systems PLC (A-/Stable/A-1) reported profit before goodwill amortization, taxes, and exceptional items of £359 million for the first half of 2002, a 26% decline compared with the same period of 2001 and below market expectations. Standard&Poor's Ratings Services said its corporate credit rating, which was lowered to its current level on Aug. 5, 2002, and outlook on BAE Systems incorporated expectations of weak earnings in 2002. Pretax profits were £41 million for the period, well below the £171 million earned in the first half of 2001. The decline in earnings was due to losses or weak results at the firm's shipbuilding, satellite, and avionics units, offset somewhat by solid performance at its North American and Airbus operations.
