This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-15792161
The article has changed 4 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Chemring shares fall on procurement cuts | Chemring shares fall on procurement cuts |
(about 7 hours later) | |
Shares in Chemring, which makes systems for the Joint Strike Fighter, fell 14% after it announced that government spending cuts were disrupting orders. | Shares in Chemring, which makes systems for the Joint Strike Fighter, fell 14% after it announced that government spending cuts were disrupting orders. |
It said the US Budget Control Act and uncertainty in European budgets was leading to weaker defence spending. | It said the US Budget Control Act and uncertainty in European budgets was leading to weaker defence spending. |
The firm reported revenues of £745m for 2011 which were 25% higher than the previous year but 5% lower than expected. | The firm reported revenues of £745m for 2011 which were 25% higher than the previous year but 5% lower than expected. |
It predicted greater market uncertainty and potential delays to orders in 2012. | It predicted greater market uncertainty and potential delays to orders in 2012. |
Analysts reacted negatively to the news. | Analysts reacted negatively to the news. |
"[Chemring] points to some delays in order placement, both from the disruption to US procurement processes and also as a result of EU budgetary uncertainty. We expect to reduce our forecasts accordingly," said David Buxton, an analyst at FinnCap. | "[Chemring] points to some delays in order placement, both from the disruption to US procurement processes and also as a result of EU budgetary uncertainty. We expect to reduce our forecasts accordingly," said David Buxton, an analyst at FinnCap. |
Shifting markets | Shifting markets |
Chemring makes a range of defence products from missile avoidance systems to radar for detecting buried explosives. | Chemring makes a range of defence products from missile avoidance systems to radar for detecting buried explosives. |
The firm said sales to Middle Eastern clients remained buoyant due to strong GDP growth in the region and sustained high oil prices. | The firm said sales to Middle Eastern clients remained buoyant due to strong GDP growth in the region and sustained high oil prices. |
Its medium-term goal is to have 40% of business coming from non-NATO markets. | Its medium-term goal is to have 40% of business coming from non-NATO markets. |
Chemring is based in Hampshire and employs 4,000 people. | Chemring is based in Hampshire and employs 4,000 people. |