Engineering company IMI’s share price is tanking after warning on profits
Specialist engineering company IMI's share price is plummeting today after warning on profits.
IMI's share price was 7.87 per cent down at 902.5p per share in mid morning trading.
In an interim management statement released today the company said that during the third quarter "economic and market conditions have continued to be challenging".
The news comes as Rolls-Royce as it warned profits would be at the lower end of expectations in 2015, while BAE announced it is going to cut 371 jobs in the UK as it plans to scale back its production of Typhoon fighter jets.
Read more: Rolls-Royce share price tumbles as it warns on profits
Revenues for the three months to September were five per cent lower than the same period a year ago.
The company added that revenues and margins for the full year will be lower than last year and adjusted earnings per share will be towards the lower end of the range of current market estimates.
Read more: BAE Systems to cut 371 UK jobs
However, IMI said that despite market conditions, the group's various initiatives will be supported, and the company remains committed to increasing investment in new product development to fuel growth.
The company will also continue to look at cost cutting measures to benefit near term results of the critical engineering division and precision engineering division.
More detail on our strategic progress will be provided with the group's full year results in February 2016.