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BAE warns of disruption ahead in U.S. market

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LONDON, Oct 11 (Reuters) - Britain's BAE Systemssaid on Thursday it was trading in line with expectations butnoted that it faces uncertainty in its core United States marketwhere a new government will have to tackle its federal deficit.

One day after BAE walked away from a $45 billion merger withAirbus parent EADS due to a lack of political support,BAE warned that it could face some limited trading disruption inthe U.S. in the last quarter of the 2012 calender year.

"We are obviously disappointed that we were unable to reachan acceptable agreement with our various governmentstakeholders," Chief Executive Ian King said.

"However, our business remains strong and financiallyrobust. We continue to see opportunities across our platformsand services offerings and in the various international marketsin which we operate. We remain committed to delivering totalshareholder value and look to the future with confidence."

It said it expected modest growth in underlying earnings pershare for 2012, assuming a satisfactory conclusion to thepricing negotiations this year with the Saudi Arabian governmenton the Typhoon Salam programme.

(Reporting by Kate Holton; editing by Sarah Young)

((kate.holton@thomsonreuters.com; 0044 207 542 8560;))

Keywords: BAE TRADING/