BAE Systems announces profit slump on US hit

BAE Systems net profit slumped 82 percent last year owing to a huge one-off charge linked to a reduction in US government spending, the British defence giant announced on Thursday. Profit after tax tumbled to £168 million ($280 million, 203 million euros) in 2013 compared with £948 million a year earlier, BAE said in a statement, adding that it expected a further drop in earnings during 2014. The group announced a 2.0-percent rise in sales for last year to £18.18 billion, with its underlying performance boosted by the so-called Salam deal with Saudi Arabia on improved pricing of Eurofighter Typhoon jets. "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 5 to 10 percent compared to 2013," BAE said.