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Jun 30, 2006

Profit warnings: softening the blow

When issuing a profit warning, IROs can temper the market's reaction by thinking ahead

Although markets have generally recovered from 2001’s abysmal performance, companies are still regularly giving out bad news in the form of profit warnings. The UK technology industry has been especially susceptible, with profit warnings from this sector tripling in the first three months of this year according to Ernst & Young. The sector is also issuing the highest number of profit warnings, with 14 percent of UK tech companies disclosing this news in the first quarter of 2006.The concern

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