Chemring's Expectations in Line With Views But Dependent on US Defense Approvals

By Anthony O. Goriainoff

Chemring Group said the board's expectations for fiscal 2023 are in line with views, subject to the U.S. Defense Department approving certain deliveries.

The U.K. defense company said Tuesday these deliveries, which have already been manufactured, represent around 25 million pounds ($31.3 million) of revenue.

"The U.S. DoD is expected to grant approval subject to determination of the quality of raw material provided by a third-party supplier that is outside of the control of the group," the company said.

Chemring said its performance to Aug. 31 progressed as planned and that revenue for the year ending Oct. 31 is now fully-covered by the order book. It said that as at Aug. 31 year-to-date order intake was GBP536 million, compared with GBP365 million in the year-prior period, and that the order book stood at GBP829 million compared with GBP575 million the year before.

The company said that order cover for fiscal 2024 is building, with its countermeasures & energetics division having 81% order cover of expected revenue, and the sensors & information sector have 54% cover.

The company said analysts' fiscal 2023 forecasts for adjusted operating profit are in the GBP65.2 million to GBP68.2 million range, with consensus of GBP66.9 million.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

September 12, 2023 03:00 ET (07:00 GMT)

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