EMI shares fall amid new profits warning

Music group EMI issued its second profits warning of 2007 today after seeing a further weakening in the North American music market.

Shares in the company tumbled another 10% as it said profits for the year to the end of March would be “significantly” below current market expectations, which were revised lower a month ago after the first profits warning.

EMI said the deterioration in its recorded music division, where sales are expected to be down by 15% on a year earlier, highlighted the importance of the restructuring plan it announced at the time of the last warning.

The group raised the prospect of major job losses last month when it said it would look to take out layers of management and seek £110m (€164m) of cost savings.