Defence firm Chemring counts cost of US crisis as it issues another profit warning
The impact of the US government shutdown has reached the UK, writes Rupert Steiner.
Defence firm Chemring issued the latest in a series of profit warnings yesterday, this time blaming delays in US orders for torpedoing around £8million of full-year operating profit.
Investors manned the defences, selling almost 25 per cent of the stock, which fell 64.4p to 220p.
Plunge: Shares in Chemring fell 64.4p to 220p as investors sold almost 25 per cent of the stock
It is the latest in a raft of cautions on earnings from chief executive Mark Papworth who cited four reasons why the firm, which makes decoy missiles and flares, was trading under par.
He said: ‘The full impact of the US government shutdown is not yet known but it will impact on the October order intake and deliveries to the US Department of Defence in the remaining few weeks of the financial year.’
The other blows were due to adverse currency movements, tensions in the Middle East disrupting shipping and problems at its Kitgore factory.
The facility in Tennessee, which makes flares that act as decoys for heat seeking missiles, has what was described as ‘quality and production’ issues.
The firm cited confidentially issues in refusing to divulge whether the quality problems went beyond a lack of government officials available to sign off its finished products.
Most watched Money videos
- The new Aston Martin DBS Superleggera makes its debut
- Take a look inside the classic Ford Sierra Cosworth RS500 car
- Investing Show: How to find the best companies to invest in
- Martin Lewis breaks down for couples how the marriage tax break works
- What is happening to house prices and the property market
- Pension guide specialists help people to understand their options
- PrivateFly's animation explains their private jet charter network
- TipTV: David Lenigas on the Gatwick Horse Hill oil find
- The Pru (Prudential) literally put an elephant in the room in ad.
- Land Rover creates one-of-a-kind defender for milestone
- How the summer Budget affects tax, pensions and wages
- Howcast's guide to bleeding your radiator