Rise in Profits Warnings
Monday, April 6, 2009 10:12
According to accountant Ernst & Young, worse is coming in the recession, as increasing number of companies these days are warning of a fall in their profits.
According the latest E&Y study, 117 publicly quoted UK companies issued a profits warning in the first three months of 2009, which is about 3% higher than in the same period last year. Support services and media companies are leading the way. Over half of the companies saying that expectations were being cut due to the falling sales. Straightforward economic slowdown became the key cause of most warnings.
The indusrty sector of housebuilders and the household goods were hit particularly hard, with 60% of the firms issuing profits warnings during the past 12 months. However, the biggest surprise came from general retailing business, who just issued only 8 profits warnings for the first quarter of 2009, down from 18 in the same period in the previous year.
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