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Tuesday, 25 September, 2001, 08:47 GMT 09:47 UK
EMI shares dive on profit warning
Robbie Williams
EMI artist Robbie Williams helps bolster sales in the face of a market dip
A warning that pre-tax profits will fall 20% this year sent shares in the UK music giant EMI into freefall on Tuesday, down 27% by 0740 GMT at 240p.

The world's largest music publisher and the third largest record label said it had been hit by a "marked deterioration" in the industry's trading conditions.

It therefore expected to hang on to its market share, even though record sales are set to slump this year.

Sales were particularly weak in the US and profit margins are under severe pressure, the company said.

Restructuring

EMI's response to the adverse market conditions was to announce a 100m ($146m) restructuring program that would eventually bring annual benefits worth 65m.

The restructuring could involve EMI pulling out of manufacturing and distribution of records, the company said.

The group is in discussions with other firms to make this happen.

Industry hit

The global economic slowdown has hit the other four major labels too.

They are Warner Music, Universal Music, BMG and Sony Music.

EMI has tried but failed to merge with both Time Warner and BMG during this year and last.

Regulators objecting to further consolidation in the industry hampered the proposed deals.


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See also:

21 Nov 00 | Business
Profits fall at EMI
05 Jun 01 | Music
CD download deal for EMI
01 May 01 | Business
Giant music merger collapses
05 Oct 00 | Business
EMI, Time Warner abandon merger
09 Aug 00 | Business
EMI dismisses price-fixing claim
15 Jul 00 | Business
EMI tests web music sales
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