by Calculated Risk on 10/23/2005 12:55:00 PM

The London Times reports: Profit warnings worst since 9/11

PROFIT WARNINGS by British companies hit their highest level last month since the September 11 attacks on America four years ago
...
So far this year there have been 370 profit warnings by quoted companies, up from 261 in the first nine months of last year.

"With profit warnings averaging 92 a quarter in the past 12 months, businesses are clearly finding it difficult to forecast in the current environment," said Andrew Wollaston, an Ernst & Young partner. "Though the economy is weaker than a year ago, this continued high level of warnings is a real concern."

The increase in profit warnings is blamed on rising costs, particularly for energy, and weaker-than-expected demand.

And Reuters adds: Slowdown in housing precipitates consumer pullback; debt correction ahead?

A UK housing market slowdown and subsequent curbs in consumer spending have precipitated companies' woes, E&Y's London head of corporate restructuring, Andrew Wollaston, said.

"The last three or four years there's been a credit boom, and now people are paying off debt."

The downward cycle continues (thanks to Joshua for the Times story).