Future shares fall on US distribution issues
Dispute in North America expected to hit earnings by up to £1 million
Future Publishing has released a pre-close trading update for the half year ending March 31, noting that a recent dispute between wholesalers and distributors in North America is expected to cost the company up to GBP 1 million.
The row, which is now over, along with "continuing weakness in print advertising" affected the US arm of the publisher, while the UK business is expected to report results close to expectations on May 20.
The company noted that it expected the US business to "return to profitability for the full-year to 30 September 2009," according to a statement, while the Board stated its belief that full year results will match expectations due to "the underlying resilience within the business; the second-half benefit of further cost-saving measures taken in the first-half; and the continuing strength of the US Dollar."
The publisher's stock was hit, however, falling by over 8 per cent just after opening to 11 pence - it's lowest point since late November 2008 when the share price fell to its all time low of 9.5 pence.