BAE Systems, which owns Glasgow's two warship yards, has announced a £130 million drop in pre-tax profits.

As reported in later editions of last night's Evening Times, it also revealed a £1.3 billion cut in sales, as a result of major cutbacks in defence spending around the world. But Britain's biggest defence contractor still declared a pre-tax profit for 2012 of £1.89bn and global sales of £17.83bn, as well as a backlog of orders worth a staggering £42.4bn.

The company was "well positioned" for the future, chief executive Ian King said, adding: "BAE Systems continues to deliver a robust performance with strong trading in a number of areas."

Key activities, including the shipyards at Scotstoun and Govan and an aviation repair and maintenance centre at Prestwick, South Ayrshire, were highlighted.

They included the Clyde-built Type 45 fleet, with handover to the Royal Navy of the fifth destroyer, HMS Defender, and sea trials of the sixth and last in the fleet, HMS Duncan, due to leave Glasgow soon.

Other highlights were the construction and delivery of the largest ever block built for the super-sized aircraft carrier HMS Queen Elizabeth.

Mick Ord, managing director of the maritime and naval ships division, said: "The last 12 months have showcased the fantastic skills and capabilities within BAE in Scotland."