* Group trading in line with expectations* Still sees underlying EPS broadly flatLONDON, Oct 12 (Reuters) - Europe’s biggest defence
contractor BAE Systems warned on Wednesday that serious
flooding at one of its plants in the United States and
uncertainty over federal budgets may disrupt sales and trading.”The group is assessing the implications of serious flood
damage at its Johnson City electronics facility following recent
severe weather along the U.S. east coast. This may result in
some sales deferral to 2012, but is not expected to be material
to this year’s earnings,” BAE said in a statement.The British group said trading since July 1 had been in line
with management expectations and that it still expected
underlying earnings per share for the year to be broadly similar
to 2010’s restated earnings.”Some near-term disruption to trading is anticipated as the
U.S. administration again operates federal budgets under a
Continuing Resolution,” BAE said.The company also noted “significant uncertainty” over future
defence spending in the United States.U.S. Defense Secretary Leon Panetta said on Tuesday that the
Pentagon would have to cut outlays on personnel, benefits and
equipment as it makes difficult choices required to reduce
security spending by $450 billion over the next decade.