Car dealer issues profit warning

See Inchcape's share price

Shares in car dealer Inchcape have fallen by 28% after the company warned that 2009's profits would be "significantly" below expectations.

It said a "rapid and unprecedented decline" in business across its markets made it difficult to forecast results.

Like-for-like sales for the first 11 months of this year had been down 4.9% on a constant currency basis, it said.

Inchcape added that the decline in new car sales had accelerated in November in most parts of the world.

Inchcape's shares closed down 20p, or 28.3%, at 50.75p.

'Substantial' decline

Inchcape sells luxury marques including Mercedes Benz, Audi and BMW. It operates in 25 countries, with its core markets including the UK, Singapore, Australia, Hong Kong, Greece, Belgium, Russia and China.

"In most of our markets we now expect more substantial sales declines than previously estimated due to the global recession and significant reduction in credit availability," the company said.

"We would expect our underlying results for 2009 to be significantly below our previous expectations."

Car sales have fallen as the economic downturn has led consumers to cut back on spending.

In the US, the big three carmakers - Ford, General Motors and Chrysler - have been seeking billions of dollars of loans from the government.