Shares In Freefall For EMI

A warning that pre-tax profits will fall 20% this year has sent shares in the UK music giant EMI into freefall. The shares slumped 35% during the day, to close at 214p.

The world's largest music publisher and the third largest record label said it had been hit by a "marked deterioration" in the industry's trading conditions.

It said it expected to hang on to its market share, although record sales would slump this year.

Sales were particularly weak in the US and profit margins are under severe pressure, the company said.