LONDON, Oct 11 (Reuters) - BAE Systems warned onThursday that it faced uncertainty in its core market, theUnited States, a day after the collapse of talks with EADS
on a merger that managers had said would broaden theirbusiness.
In a short statement, the British armaments manufacturersaid it was trading in line with expectations but that it couldface some limited trading disruption in the United States in thefinal quarter of 2012, as the government in Washington tries topare the federal deficit.
U.S. sales account for nearly half of BAE's revenue.
"We are obviously disappointed that we were unable to reachan acceptable agreement with our various governmentstakeholders," BAE Chief Executive Ian King said of the faileddeal to merge with European Airbus manufacturer EADS that wouldhave created the world's biggest aerospace and defence group.
"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."
Talking to reporters on Wednesday, King had played up thecompany's opportunities outside the United States and Britain,naming Saudi Arabia and Oman as two areas of growth.
The group said on Thursday it expected modest growth inoverall underlying earnings per share for 2012, but this assumeda satisfactory conclusion to pricing negotiations this year withthe Saudi government on the Typhoon Salam programme to supplythe Gulf kingdom with Eurofighter Typhoon jet fighters.
It is also in talks with Oman to supply aircraft and supportfor them. And it has secured a contract win in South Korea,which it sees as a key market with potential for further deals.
(Reporting by Kate Holton; Editing by Sarah Young and AlastairMacdonald)
((email@example.com)(0044 207 542 8560))
Keywords: BAE TRADING/