The share price of BAE Systems has taken a heavy fall this morning (February 20th) after the company released its latest financial results.
It announced profits were down to £442 million, which is a considerable drop down from the figure of £1.2 billion that was recorded in the previous year.
BAE explained in a statement that this fall in its profits is reflecting one-off impairment costs of £865 million, but stocks still dropped by ten per cent on the news.
"Overall, the group delivered a solid performance in 2013, against the background of reduced government spending," said chief executive Ian King.
BAE Systems also added that sales in 2013 were up by two per cent at £18.2 billion.
Shares in the company fell after BAE noted that its earnings per share would be between five to ten per cent lower this year than it was in 2013.
BAE stocks recovered slightly during the morning session, but by 12:55 GMT they were still around 8.5 per cent down compared to the start of the day.
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