(Reuters) - Defence contractor Chemring Group Plc raised its expectations for first half operating profit on Friday, citing faster payouts by insurers for an explosion at its UK military hardware factory that has crippled production.
The British contractor had a tough 2018 after the explosion in August left one person dead and forced the halting of production at the plant near the English town of Salisbury.
The company said, however, on Friday that it now expects 30% of its profit in fiscal year 2019 to be realised in the first six months, compared with previous guidance of 15%, although it did not move its full-year expectations.
Chemring on Friday also said its Australian unit had been awarded two contracts by the U.S. Department of Defence to supply countermeasures to the Royal Australian Air Force, the U.S. Navy and the U.S. government’s Foreign Military Sales scheme in support of Lockheed Martin F-35 fighter jets.
It said one contract had a value of up to $60.4 million (46.4 million pounds) and the other $6.5 million.
Reporting by Pushkala Aripaka in Bengaluru; editing by Gopakumar Warrier and Patrick Graham