EMI Shares Rise on Restructuring
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LONDON (AP) _ Shares in troubled music company EMI Group PLC rose Friday after published reports said it will announce next week it is cutting 1,000 jobs as part of a debt-slashing restructuring plan.
EMI spokeswoman Amanda Conroy declined to comment on the reports that the company planned to eliminate 1,000 of the 9,000 jobs in its recorded music division.
The Financial Times said in Friday’s editions that the cuts could cut EMI’s annual costs by as much as 100 million pounds ($142 million).
EMI has been struggling in a depressed market for recorded music and has issued two profit warnings in the past six months. Last month the company said it would announce the results of a review of EMI Recorded Music on March 20.
The company announced last month that its profit before tax, amortization and one-time items in the year ending March 31 would be about 150 million pounds ($215 million), compared with market estimates ranging from 160 million pounds to 207 million pounds ($229 million to $296 million).
The company attributed the disappointing results to declining sales of recorded music, adverse exchange rates and some specific one-time costs. In January, EMI announced it was paying singer Mariah Carey $28 million to terminate her long-term contract.
Last week EMI announced it was closing its compact disc manufacturing plant in Swindon, western England and transferring production to its other European operation in the Netherlands. The Swindon plant employs 192 people.
EMI has 70 labels and 1,500 artists, including The Beatles, Paul McCartney, Lenny Kravitz, Janet Jackson, Garth Brooks and Pink Floyd.
EMI shares rose 4.04 percent to 354 pence ($5.03) in London.
On the Net: www.emigroup.com