BAE Systems (LON:BA) saw shares slip on Wednesday morning, after reporting a fall in profits in the first half of the year.

Operating profit fell 10.5 percent to £792 million in the first half of the year, led by a 3 percent dip in sales to £8.8 billion. Revenue also sunk 5 percent to £874 million, sending first-half underlying earnings (EBITA) down 6 percent on a constant currency basis.

The group, one of Britain’s largest defence and security companies, reported a £1 billion drop in order intake, with stronger performances in its Electronic Systems and Air sectors negated by weakness in Maritime and Platforms & Services.

“We have made good progress in the first half strengthening the outlook through significant wins on the Australian SEA 5000 and US Amphibious Combat Vehicle programmes. These, combined with the launch of the UK Combat Air Strategy, provide good momentum into the second half and beyond,” Charles Woodburn, Chief Executive, commented.

“In this transition earnings year, our Group earnings guidance is maintained and, with a large order book and a positive outlook for defence budgets in a number of key markets, we have a strong foundation to deliver growth and sustainable cash flow.”

Shares in BAE Systems are currently trading down 1.07 percent at 646.20 (0945GMT).