×

BAE warns of disruption ahead in U.S. market

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

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

"We are obviously disappointed that we were unable to reach an acceptable agreement with our various government stakeholders," Chief Executive Ian King said.

"However, our business remains strong and financially robust. We continue to see opportunities across our platforms and services offerings and in the various international markets in which we operate. We remain committed to delivering total shareholder value and look to the future with confidence."

It said it expected modest growth in underlying earnings per share for 2012, assuming a satisfactory conclusion to the pricing negotiations this year with the Saudi Arabian government on the Typhoon Salam programme.

(Reporting by Kate Holton; editing by Sarah Young)

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

Keywords: BAE TRADING/