BAE in $929 million write-down on lost U.S. deal

The decision by the U.S. army was upheld on Friday after a month-long re-evaluation of the bids.

The U.S. Army cleared Oshkosh Corp to resume work on the $3 billion medium truck contract after it was requested to go back and revaluate the bids by the congressional Government Accountability Office in December following protests from the losing bidders.

BAE confirmed on Monday it will take an impairment of goodwill and other intangible assets on its 2009 accounts, after previously flagging it would take a hit if it lost the contract.

Analysts at UBS had forecast a write-down of 1.2 billion pounds including the wind-down of its Family of Medium Tactical Vehicles program in 2010.

BAE will also take a $450 million hit to its 2009 results, which it will report on Thursday, from fines to settle long-running corruption investigations in the U.S. and Britain.

Oshkosh won the multibillion dollar truck contract, beating incumbent BAE Systems, which had been making truck for the Army for 17 years.

"We recognize the U.S. Army's decision and we look forward to working with the Army and the Department of Defense to identify other available opportunities for our skilled and experienced workforce," said Ian King, Chief Executive, BAE Systems.

Shares in BAE Systems were up 0.03 percent at 7:11 a.m. EST.

(Reporting by Lorraine Turner; Editing by Sharon Lindores)