Market analysts who spoke to Sunday Nation said when profit warnings
are issued, investors tend to lose their wealth while jobs stand at risk.
Moreover, Firth (34), Francoeur, et al (35), Alves, et al (36), and Tse and Tucker (37) report results indicating reaction to profit warning
depends on firm-specific factors.
"Shares in the airlines sector have been spooked by [Lufthansa's] profit warning
," said Russ Mould, investment director at AJ Bell.
Tom Lukic, EY's restructuring partner in the Midlands, said: "The low number of profit warnings
in the West Midlands is a sign of an improving local economy and is consistent with the growth we're seeing across the region.
NORTH-EAST plcs are weathering the credit crunch better than any other region in the first quarter of 2008, as profit warnings
dropped by 25%, according to latest research.
Similar profit warnings
were issued a day earlier by Bank Leumi (TASE: LUMI) and First International Bank.
Finnish cargo-handling solutions provider Cargotec Corporation (OMX Helsinki:CGCBV) issued on Monday (19 January) a profit warning
for the financial year 2008.
The latest profit warning
is the climax of a traumatic two and a half year period for Stagecoach.
LAST week, EY released its latest Profit Warnings
report, which provides an insight into profit warning
trends and the key economic, sector and market issues facing all UK businesses.
Communications networks specialist Norcon plc (AIM:NCON) issued a profit warning
today, reporting that its pre-tax profit and net income for the year will now be lower than market expectations.
An analyst with Israel-based Clal Finance Batucha has opined that Bank Hapoalim (TASE: POLI) may have to report a profit warning
Danish industrial group NKT Holding A/S (OMX Copenhagen:NKT) issued a profit warning
on Thursday (18 December), saying that its full-year profit before tax and restructuring costs is likely to be around DKK725m, or DKK50m lower than previously announced.
SFI - the group which owns the Slug & Lettuce wine bar chain - saw its shares plummet by two thirds after it shocked the City with a profit warning
, axed its dividend, and said it was operating over its overdraft limit.
BUDGET airline easyJet could axe a number of unprofitable routes from its flight schedule after last week's shock profit warning
ABBEY National boss Ian Harley yesterday faced the unenviable task of explaining this week's profit warning
to big City shareholders as investors eyed the bank's pounds 2.4billion share slump over the past four days.