Chemring became the latest British arms company to report that a major US military contract has gone with a whimper rather than a bang.

Chemring, which specialises in energetics and countermeasures - explosives and flares - today admitted that Kilgore, its business that makes pyrotechnic decoys to prevent the shooting down of US helicopters in Iraq and Afghanistan, is having problems.

In a trading statement covering the four months to the end of September, Chemring said: "Trading at Kilgore continues to be affected by delays in the placement of contracts by the US Air Force."

Kilgore is part of Chemring's world-leading countermeasures technology business.

The news comes just days after arms giant BAE Systems picked a fight with the American authorities after it was dropped by the US Army from a lucrative contract supplying armoured trucks. BAE is seeking to overturn the decision - its second Pentagon contract loss in two months.

The news on Kilgore took the shine off an otherwise upbeat statement from Chemring, which said trading over the summer had been positive.

It reported revenues up over the summer to £143 million from £102 million though that is slower than the 50% increase in income in the 10 months to the end of August.