Shares in EMI plunged 12% yesterday after it issued its second profits warning in just over a month, blaming primarily weak market conditions in the US. Last month EMI warned their year end profits would be 6-10% lower than for the last financial year, but yesterday they announced the final figure was more likely to be 15% down on 2005/2006.
As previously reported, EMI Group chief Eric Nicoli has begun a radical overhaul of the Group's recorded music businesses in response to the disappointing financials, which started with the axing of the company's two recorded music chiefs Alain Levy and David Munns, and has led to a big cost-cutting restructure of EMI's US operations plus, we hear on the grapevine, several redundancies here in the UK too.