EMI Cuts Revenue And Profit Forecast Again
February 14, 2007 at 8:21 AM (PT)
EMI GROUP cut its revenue and profit forecasts for the second time this year as music sales slump in the U.S. EMI shares plunged to a two-year low after the LONDON-based company said sales at its recorded music division will fall 15% and earnings will miss analysts' estimates. EMI said last month that full-year music sales would decline 10%.
The company, which released albums by ROBBIE WILLIAMS and NORAH JONES in the second half, today reported an "unprecedented level of market decline" and "an exceptionally high level of product returns."
"This revision to expectations is as a result of the continued and accelerating deterioration in market conditions in NORTH AMERICA," EMI said today in a statement. Profit for the year ending MARCH 31 "will be significantly below current market expectations."