BAE issues sales warning after flooding hits plant

BAE Systems warned yesterday that serious flooding at one of its plants in the US and uncertainty over federal budgets may disrupt sales and trading.

But the defence giant said that it still expected underlying earnings for this year to be broadly similar to those for 2010.

However, BAE Systems did warn of "future uncertainty" over spending, after the US announced this week that it was planning to cut defence budgets by $450bn (£285bn) over the next decade.