BAE warns sales may be hit by floods and budget in US

Defence giant BAE Systems today warned that serious flooding at one of its plants in the US and "significant uncertainty" over federal budgets there could hit its sales.

"The group is assessing the implications of serious flood damage at its Johnson City electronics facility following recent severe weather along the US east coast," BAE said.

"This may result in some sales deferral to 2012, but is not expected to be material to this year's earnings."

The British group said trading since July 1 had been in line with management expectations and that it still expected underlying earnings per share for the year to be broadly similar to 2010's restated earnings.

"Some near-term disruption to trading is anticipated as the US administration again operates federal budgets under a continuing resolution," the group added.