Invensys shares dive 53% on profit warning

Britain's Invensys plunged more than 50 per cent to a record low today after the engineer warned second-half earnings may slump…

Britain's Invensys plunged more than 50 per cent to a record low today after the engineer warned second-half earnings may slump.

The company - which makes controls and automation equipment for factories, offices and homes - said core operating profit could fall 25 per cent from the first half.

The warning came about a week after Invensys said it was sticking to its guidance on operating margins and had no plans to issue a statement.

Invensys shares plunged 53 per cent 19-3/4 pence in early afternoon trade. Shares originally rose when chief executive Mr Rick Haythornthwaite was brought in a year ago to help turn around the firm, which some feared could break its banking covenants.

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Analysts said today the turnaround had most likely collapsed.

"This is a company that seems to permanently disappoint," said Mr Gary Parkinson, a markets analyst with Financial Spreads.

AFP