Shares in the military equipment maker fell sharply when it warned on profits because of an unexpected delay to a contract. The overall backdrop is one of reduced defence spending, as part of debt reduction in a number of countries.
The particular contract that caused the warning was for Husky Detection System radars, which are attached to vehicles to search the ground for explosives. Bills for the devices were not paid by the US Army as expected in October, but instead in November, affecting revenues for the year to end October.
Risk warnings
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