BAE books 592m write-down after losing US army contract [Business Day, 2010-02-16]

Publication: Business Day Issued: Date: 2010-02-16 Reporter: Sabine Pirone

BAE books 592m write-down after losing US army contract

Publication	Business Day
Date	2010-02-16
Reporter	Sabine Pirone
Web Link	www.bday.co.za

UK Defence giant BAE Systems will book a 592m write-down on the value of its Armor Holdings unit, the biggest maker of protection for Humvee troop transports, after losing a US army contract to build armoured trucks.

The 592m charge cuts the value of the US acquisition that BAE made in July 2007, according to a release yesterday . BAE had said that losing the order would pose a significant threat to operations in Texas, where the truck is built.

BAE and Navistar International protested against the decision last year to hand the contract to Oshkosh, saying the army did not fully weigh the risks in that proposal for the Family of Medium Tactical Vehicles.

On Friday the US army upheld the contract awarded to Oshkosh following a review of protests. The five-year contract is for trucks, trailers and other equipment and is worth about 3,02bn.

BAE fell 341,4p yesterday in London, for a 12,1bn market value.

With acknowledgements to Sabine Pirone and Business Day.

The profit of crime.

If the SFO had done its job properly and preferred criminal charges, the share would have fallen to 0,0000 pence because that's all a pile of poodle droppings is worth.