Downbeat forecast sees Chemring shares tumble
Wednesday 29 August 2012
The military equipment maker Chemring has warned profits this year will be £15m less than expected, sending its shares diving 13 per cent as investors feared the news would scare off a potential bid from the US private equity giant Carlyle.
Carlyle has until 14 September to make a firm offer or walk away. Chemring shares fell 46.5p to 324p as investors bet that the latter is more likely.
Chemring said the hit to forecasts was due to a delay in production of a system that helps troops to breach obstacles such as minefields. Errors in a new resource planning system at its Florida unit are also a factor.
The company – which manufactures flares, equipment to detect improvised explosive devices and the mechanisms used in aircraft ejection seats – said that its order book at the end of July stood at £910m, 9 per cent lower than a year ago.
Chemring said: "The outlook for the US defence market continues to be uncertain with the majority of our customers indicating they have no visibility of funding in the next financial year."
Like its peers, Chemring is being challenged by lower defence spending in the US and Europe as governments tighten their belts.
- 1 Strictly Come Dancing 2014: Gregg Wallace joins line-up as final celebrities revealed
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 4 Oil tanker with $100 million cargo goes missing off Texas coast
- 5 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...