STOCK WATCH
Toshiba issues profit warning
Sagging demand for semiconductors and the Asian economic crisis have taken their toll on electronics giant Toshiba, which has issued a profit warning and outlined job cuts. It will post a net loss of Y25 billion for the first half of 1998. The forecast is sharply down from Toshiba's projections of Y40 billion net profit. The figures reflected a continued weakening of Toshiba's profits, which slid 85 per cent last year. Profits for the year ending 31 March 1999 are expected to be around Y70 billion, compared with Y82.29 billion the previous year.
Dorling Kindersley
Dorling Kindersley, the struggling leisure software publisher, appears to be bouncing back following a string of profit warnings and a harsh cost-cutting operation. For the year ended 30 June, pre-tax profit fell from £10.2 million to £9 million, including a second half profit rise of £4.9 million - a 44 per cent leap. Sales reached £184 million. The cost-cutting will continue, with plans to slash £5 million by the year 2000.
MDIS
Services group MDIS has been bolstered by its joint software venture with Fujitsu to reduce pre-tax losses from £3.9 million to £387,000. For the six months to 30 June, MDIS recovered operating profit from a loss of £3.35 million to £431,000 and sales were up 73 per cent to £16.3 million.
The group included a restructuring hit of £1 million for the first six months and stated there would be another £1 million charge in the second half.
Rockwell
A lack of demand for modem chips has led to Rockwell issuing a warning of $265 million in charges and operating losses from its semiconductor business. It will also slash its global workforce by 10 per cent in an effort to cut costs by $200 million.
Alcatel
French telecoms group Alcatel has caused panic in the European market by issuing a profits warning. It blamed the Russian and Asian crises for a FFr2 billion shortfall from analysts' expectations. The warning led to a selling frenzy, resulting in the company losing FFr70.5 billion from its market capitalisation at the end of last week.
Trace
Trace Computers doubled its profits for the year ended 31 May to £1.2 million. Turnover was up 10 per cent at £14.7 million. The results pushed shares up by 11p to 127.5p.