BAE Systems shares fall 10% after profit warning

Shares in BAE Systems fell 10% today after the aerospace giant issued a profit warning.

Releasing its results for 2013, the group reported pre-tax profits fell by two-thirds to £442m, down from £1.2bn in 2012, while sales rose just 2%. BAE forecast earnings per share could be as much as 10% lower this year. It pointed to "challenging market conditions" and the impact of one-off impairment charge of £865m. However, BAE reached a deal with Saudi Arabia this week to provide 72 Eurofighter Typhoons to the country for £4.4bn. This had been a long-running problem for the firm after the initial contract had to be renegotiated. Shares in the group were 9% lower at 397.24p ...