BAE Systems UK defense firm announced a spiky drop in income following the strike by the loss of an agreement for US defense trucks. BAE announced a pretax profit of £282 million for 2009, down 88% from the profit of £2.37 billion last year. The firm was hit by a £973 million write-down at its US firm Armor Holdings after the loss of the truck contract.


BAE is agreed to pay £286 million to US and UK governments next to corruption inquiry. Reporting its results, the company said it apologize for its inadequacy concerning to the fines, but said the agreement would let it contract to finish with the problem.

BAE lost deal to supply the US defense armored trucks was an important blow to its business in the US a growth market for the company in recent years. It became the US defense department fifth largest dealer next to acquire of the truck producer Armor Holdings in 2007. But a follow up contract likely worth £2bn was granted to a US competitor firm last year.

BAE stated care over the view for the international defense market in upcoming year. It said sales increased to 21% last year to £22.4 billion, but notified that upcoming income would be hit by likely falls in government defense expenses. Defense financial plan in UK and US are likely to come below more stress.