27th Sep 2013 09:22
LONDON (Alliance News) - QinetiQ Group PLC reaffirmed its full-year guidance in a trading statement Friday, saying that while the range of possible outcomes were wider than usual at this point, the full impact of sequestration on US government budgets remains unclear.
The defence, security and aerospace company said that its EMEA Services unit continued to perform well, and the performance of its US Services uit remains in line with its expectations. It cautioned that market conditions remained challenging due to US government budget reductions. Its Global products division continued to be impacted by US budgetary pressures, and it said that visibility of significant orders remained limited.
US President Barack Obama and Republicans remained at loggerheads over federal budget talks and an increase in borrowing limits overnight Friday. If an agreement cannot be reached, the US government will run out of money to operate next month.
Elsewhere, QinetiC said its expects orders worth USD28 million from Iraq and Pakistan to be delivered in the second half of the year, after originally anticipating them earlier.
Shares in QinetiQ were trading up 1.30 pence at 195.90 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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