Finmeccanica, the Italian defense and aerospace giant, has reported a 68 percent increase in its first half net profits over last year's numbers. This year's H1 profit was $463 million, which easily trumped last year's $276 million. Finmeccanica expects its revenues to grow a further 6 percent to 11 percent by the end of the year.

The profit was aided by the sale of a stake in the company -- 2.9 percent of STMicroelectronics was sold earlier this year. Lower corporate taxes and better sales figures also contributed significantly.

Two months ago Finmeccanica agreed to buy DRS Technologies, an American technology firm very active in Iraq. To finance the purchase, Finmeccanica is planning to raise between $779 million and $1.55 billion through bonds in the next year.

On the year, Finmeccanica's shares are down about 14 percent. The rest of the European defense sector has slipped by 25 percent of its total value over the same period of time.

Finmeccanica also announced it expects its total sales this year to reach $23.2 billion. It hopes to sell $24.7 billion in goods next year. Further sales might be added through DRS, whose sales are projected at $3.7 billion in 2009.

South Korea and Turkey sign tank development deal.

Turkey and South Korea have further expanded their already significant defense trade by signing a battle tank development contract.

Under the terms announced by the Korean Defense Acquisition Program Administration, Turkey will transfer $400 million to South Korea in exchange for South Korean help in developing Turkey's new battle tank.

The transfer of technology makes up $330 million of the deal, and production of four prototypes makes up the rest of the money. During an unspecified period of time starting after 2015, Turkey will then begin to build 200 tanks of its own.

The transfer represents South Korea's first export of battle tanks and their technology.

Last year Turkey bought $500 million worth of KT-1 pilot trainers from Korea Aerospace Industries, a state-funded entity. KA will produce 55 units by 2013.

Turkey is also said to be in the market for $100 million worth of South Korean weapons -- chiefly 155mm self-propelled artillery.

Bulgaria to buy more Belgian frigates and minesweeper.

Following the approval of the deal by the Bulgarian parliament, the last hurdle to a deal between Belgium and Bulgaria for two secondhand frigates and a minesweeper has been cleared.

Three years ago Bulgaria had bought a first secondhand Belgian frigate.

The Bulgarian government previously approved the new deal for the two frigates but had awaited parliamentary approval. The $83.8 million deal can now be completed.

Bulgaria has also bought two corvettes from Armaris, a subsidiary of the French naval defense company DCNS.

Both deals were delayed because of Bulgarian financial problems. The Armaris deal was originally for four corvette, but it had to be downgraded because of the cash-flow issue.

Bulgaria has been very keen on these deals, as it helps its military upgrade to NATO's standards. Bulgaria joined NATO in 2004.

BAE spends a billion dollars on consultancy firm purchase.

BAE Systems has purchased the Detica business and technology consultancy, which focuses on security and resilience, fraud containment, risk management and regulatory compliance, Defense News reports.

The deal is worth approximately $1.062 billion.

Over the past year Detica grossed $400 million. Its chief client is the British government. The U.S. government and financial sector are also clients.

The purchase allegedly was made with an eye on the British homeland security boom, which is expected to precede the staging of the 2012 Summer Olympics in London. The British security and resilience market is expected to double to $5.92 billion by 2011.

BAE Systems is expected to bid for more firms similar to Detica in the United States and Saudi Arabia.