Consolidated income statement

for the year ended 31 December

	Notes	2008 £m	Total 2008 £m	2007 £m	Total 2007 £m
Continuing operations
Combined sales of Group and equity accounted investments	3		18,543		15,710
Less: share of sales of equity accounted investments	3		(1,872)		(1,401)
Revenue	3		16,671		14,309
Operating costs	4		(15,386)		(13,480)
Other income	5		415		209

Group operating profit excluding amortisation and impairment of intangible assets		2,003		1,335
Amortisation	11	(247)		(149)
Impairment	11	(56)		(148)
Group operating profit			1,700		1,038
Share of results of equity accounted investments excluding finance costs and taxation expense		132		142
Financial income of equity accounted investments		44		35
Taxation expense of equity accounted investments		(37)		(38)
Share of results of equity accounted investments	14	139		139
Impairment in respect of equity accounted investments	14	(121)		–
Contribution from equity accounted investments			18		139

EBITA¹ excluding profit on disposal of businesses and uplift on acquired inventories		1,897		1,449
Profit on disposal of businesses²	9	238		40
Uplift on acquired inventories (included in operating costs)		–		(12)
EBITA¹		2,135		1,477
Amortisation		(247)		(149)
Impairments		(177)		(148)
Financial income of equity accounted investments		44		35
Taxation expense of equity accounted investments		(37)		(38)
Operating profit	3		1,718		1,177
Finance costs	6
Financial income		3,380		1,257
Financial expense		(2,727)		(1,199)
			653		58
Profit before taxation			2,371		1,235
Taxation expense	8
UK taxation		(351)		(201)
Overseas taxation		(252)		(134)
			(603)		(335)
Profit for the year from continuing operations			1,768		900
Profit for the year from discontinued operations	9		–		22
Profit for the year			1,768		922

Attributable to:
BAE Systems shareholders			1,745		901
Minority interests			23		21
			1,768		922
Earnings per share	10
Continuing operations:
Basic earnings per share			49.6p		26.0p
Diluted earnings per share			49.5p		25.8p
Discontinued operations:
Basic earnings per share			–		0.6p
Diluted earnings per share			–		0.6p
Total:
Basic earnings per share			49.6p		26.6p
Diluted earnings per share			49.5p		26.4p

1 Earnings before amortisation and impairment of intangible assets, finance costs and taxation expense.
2 Comprises a loss of £nil in operating costs (2007 £8m) and a profit of £238m in other income (2007 £48m).

Most computers will open PDF documents automatically, but you may need to download Adobe Reader.