AEROSPACE group BAE Systems -- which is shedding almost 900 jobs in Lancashire -- has announced a jump in profits.

The firm saw half-year profits before tax for the six months to June 30 increase to £214million, from £132million at the same point last year. It also has orders in the pipeline worth £37billion.

And it said deliveries and orders on the Airbus programme -- which a clutch of East Lancashire firms are also involved in as well as workers at BAE's Samlesbury site -- were continuing to rise.

BAE Systems said it well on track to meet its target of £55million savings this year from its merger with Marconi Electronic Systems (MES) last year. The merger was planned to generate savings of not less than £275 million by the third year, said chief executive John Weston.

BAE bought MES, the defence business of the old GEC, for £7billion last November.

He added: "Several major programmes are projected to achieve higher trading milestones and product deliveries in the second half.

"In addition it is anticipated that Airbus profitability will continue to improve."

Earlier this year BAE announced 880 job cuts in Lancashire as part of a national cost-cutting programme.

Although many jobs will go through voluntary methods unions fear compulsory redundancies. BAE Systems has said cuts, coming after its merger with Marconi, are needed for it to be competitive in the worldwide aerospace industry.