Fewer profit warnings issued
Second quarter profit warnings down 36% year on year
British companies issued fewer profit warnings in the second quarter of 2009,
than in the same period the year before, according to an Ernst & Young
Listed companies issued 63 profit warnings between March and June, a year on
year drop of 36%, the Press and Journal reports.
Ernst & Young parnter Colin Dempster cautions using the data to paint a
picture of a recovering economy, adding that many companies are refusing to
provide profit guidance citing difficulties in forecasting.
‘Naturally, this will reduce the number of profit warnings without
necessarily being indicative of an upturn, particularly in sectors like retail,
which felt the pain of the downturn first,’ he told the newspaper.