LONDON (Reuters) - British military equipment maker Chemring Group (LSE:CHG) warned that would take an 8 million pound hit to 2013 operating profit from continuing production and quality problems, and that it saw 2014 performance behind this year's.
The company, which supplies equipment such as flares and pyrotechnics for ejection seats in aircraft, said on Friday that the production issues at its Kilgore facility and movement in dollar-pound exchange rate would adversely affect its bottom line.
"Early indications, given the continuing difficult market conditions, are that full year 2014 performance is likely to be less than the anticipated current year outturn," the company said in a statement.
Analysts had expected the firm to report operating profit of 76.6 million pounds this year, and 83.0 million pounds next year, according to a Thomson Reuters poll of five brokers.
Chemring in June said it expected full-year results to likely be at the lower end of its expectations as it restructures its business to cope with the uncertainty around defence budget cuts in the United States.
(Reporting by Sarah Young; Editing by Paul Sandle)