EMI shares were down yesterday after the company issued its second profit warning for 2007.
Shares fell 11.3 per cent to £212.25 after the music giant warned that sales were below forecast. Poor returns in the US coupled with a bad Christmas for the music industry overall has forced EMI to revise its sales forecasts for the full-year.
"This unprecedented level of market decline has led to an exceptionally high level of product returns," the company said in a statement saying that its physical market had declined by 20 per cent.
In January, the company issued its first profit warning, announcing to the stock exchange that music sales over Christmas could be up to ten per cent lower than expectations.
A strong release schedule was forecast to help EMI's music sales recover in the last six months of this financial year, but the sales expectations did not materialise for the group.
Chief executive officer Eric Nicoli recently took over the reigns of the company's music business. Mr Nicoli's predecessor Alain Levy and vice chairman David Munns left the company in a restructure in January.
The second profit warning has seen Mr Nicoli placed in the spotlight again after already facing criticism that he may not be the right person to turn EMI's woes around.
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