PROFITS at British Aerospace almost doubled last year as the firm's dramatic recovery continued, it was revealed today.

The defence giant - which employs more than 12,000 in Lancashire and is vital to hundreds of local firms - today reported profits soaring to £330 million on sales of £5,741 million.

And BAe, which only four years ago was on the brink of collapse, confirmed its importance to the British economy with news that 81 per cent of its production last year was exported around the world.

The defence division of the business, which the Samlesbury and Warton sites operate under, reported profits of £487 million on sales of £4,258 million. The order book for the group at the beginning of 1996 stood at £13,406 million.

Chief Executive Dick Evans said a shake up of the company had now been carried out successfully.

"The challenge is now to build on the leading position already established in the UK and Europe to maintain a world class competitive edge," said Mr Evans.

Today's results pushed the share price up by 7p to 875p

A BAe spokesman today denied national newspaper reports that the company was involved in merger talks with GEC.

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