"Following last year's non-recurring benefit from the Salam price escalation settlement, together with continuing US budget pressures, the group's reported earnings per share is expected to reduce by approximately five per cent to 10 per cent compared to 2013," BAE said in a statement.
The company had to lower its fullyear earnings guidance for the previous two years after it failed to agree on a price for the 72
It finally agreed on pricing on Wednesday, meaning the deal will be factored into 2014's results.
Yesterday's profit warning came as the company reported a three per cent rise in underlying core earnings to £1.9bn in 2013, while underlying earnings per share increased by nine per cent to 42p.
"We have started 2014 with good momentum with a settlement on Salam pricing, US budgets in place and a well-defined
"Budget pressures in some of the group's larger markets are expected to prevail but
Shares closed 8.3 per cent lower.
Most Popular Stories
- Herbalife Puts Off Meeting for Icahn Talks
- Obama, Ukraine Discuss Russian Incursion in Crimea
- Senate Reaches Unemployment Benefits Deal
- Calumet Photo Files for Bankruptcy
- Navarro Celebrates 2 Years of Vida Mia
- Venezuela Death Toll Reaches 28
- Federal Gov't Deficit Continues to Decline
- Russia Holds Large Military Drills in South
- Ukraine Moves Closer to Joining E.U.
- Dmytro Firtash, Ukrainian Billionaire, Arrested in Vienna