The end of the Iraq and Afghanistan wars pushed this defense company to the brink

Chemring is in seriously bad shape.

The defense company put out an unscheduled profit warning on Tuesday saying operating profit for the year was set to be a third below forecasts, blaming delays to an ammunition contract. That's $24.5 million (£16 million) of profit being wiped out.

It's the second stroke of bad luck for the company in two months. In September, Chemring announced that a significant ammunition contract was being canceled by the US government.

Chemring says discussions are being held with its lenders to waive default clauses on loans and the company plans to go cap in hand to investors in the first quarter of next year to raise up to £90 million ($138.1 million).

http://www.businessinsider.com/chemring-shares-dive-35-on-profit-warning-2015-10