AEROSPACE giant BAE Systems today announced improved profits for the first six months of the year.

But the company admitted it still did not have confirmation of the vital second order for the Eurofighter Typhoon.

BAE announced interim profits of £486million, up from £465million at the same period last year, thanks to good performances from its US operations and its customer solutions and support businesses.

But the jobs of thousands of BAE workers at Samlesbury and Warton depend on the Ministry of Defence signing an agreement to buy more Typhoon jet fighters.

Chief executive Mike Turner said deliveries of Typhoon aircraft were now well under way with 21 aircraft in service at the end of June with the air forces of the four partner nations, Germany, Italy, Spain and the UK.

"At the end of 2003, I identified the importance of negotiations with the UK MoD with regard to the next phase of Typhoon development and the second tranche of production," he said.

"These negotiations continue in addressing a number of complex issues, including the future programme schedule and operating capability of the aircraft."

In his first statement to shareholders, new chairman Dick Oliver described BAE as a company rich in technology.

"I see a company that has had a turbulent time, but which is now benefiting from improved stability," he said.

"From progress the company has made recently it is clear there is a real focus on delivering improved performance."