BAE expects drop in demand

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BAE Systems executives expect demand from across the Atlantic to drop in the next year, it was announced.

The announcement was made at BAE’s annual general meeting yesterday at Farnborough.

Chief executive Ian King said although spending cuts would affect the market in the United States, the company’s domestic contracts remained steady.

Mr King said: ‘In the US, the announced defence budget, while not yet finally agreed in detail, indicates spending reductions much as we had anticipated and points to a more predictable outlook than we have seen in recent years.

‘In the UK, our business continues to benefit from long-term, stable contracts in the maritime and military air sectors.’

In February BAE forecasted an earnings drop of up to 10 per cent this year due to the spending cuts.