Invensys in a plunge on its profit warning
Saturday 14 January 2012
Shares in the engineering giant Invensys slumped 20 per cent yesterday after it warned that its profits this year will fall well below City expectations.
Problems on building nuclear reactors in China and a number of railway signalling contracts around the world mean that operating profits will be £60m less than expected at about £210m, down from last year's £262m.
Shares in the mid-cap company were the biggest fallers in the FTSE All-share yesterday, closing down 43.9p at 183.2p.
In China the group has had to do more engineering work than it had expected on the control and safety systems for four new nuclear power reactors on a contract worth £250m, mainly because they are among the first to use digital rather than analogue systems. This will hit operating profits by £40m.
In the rail division a "handful" of contracts have been reviewed and found to carry extra costs and delayed revenues. None is believed to be in the UK, where Invensys was yesterday awarded three large signalling contracts. Operating profits from the rail division will fall £20m short of management targets.
Taken together, analysts said the two divisions would knock £60m from their average profit forecast of £270m, and warned they could have a knock-on effect next year. "It has severely impacted my confidence in management to deliver the promised margins," Mark Wilson, an analyst at Collins Stewart, said.
- 1 Disney heiress Abigail disowns her share of family profits in West Bank company
- 2 The secret report that helps Israel hide facts
- 3 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 4 Israel's propaganda machine is finally starting to misfire
- 5 HSBC closes bank accounts belonging to Muslim clients in the UK
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
HSBC closes bank accounts belonging to Muslim clients in the UK
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...
£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...