EMI Full-Year Earnings Beat Estimates
April 18, 2007 at 6:01 AM (PT)
EMI GROUP said full-year profit will beat analyst estimates and it is cutting costs faster than expected, reports BLOOMBERG. The company expects to post earnings before interest, tax, depreciation and amortization before exceptional items of about 174 million pounds ($350 million) for the fiscal year ended MARCH 31, LONDON-based EMI said in a statement. The shares, down 19% this year before today, had the biggest gain in almost five months.
The company suspended its dividend while it proceeds with a program designed to save 110 million pounds. EMI is taking steps to recover after disappointing holiday sales led it to oust two music executives and the music industry reels from years of declining revenue.
EMI expects at least 70 million pounds of the savings to be achieved by MARCH 31, 2008 and the remainder to be reflected in the results for fiscal 2009, the company said. The cash cost of the program won't exceed 125 million pounds, less than the 150 million pounds originally estimated.