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AMP $5.13

AMP-Profit Warning?

  1. AMP announced on 16 May that it anticipated profit growth of 10% a year after 2001.
    On 4 July it reconfirmed an earnings sensitivity of $45m to a 5% drop inthe FTSE and $60m to a 5% drop in ASX.
    Given that since 16/5 the FTSE has dropped 25.8%and the ASX has dropped9.2% this would correspond to a fall in earnings re FTSE of $232m and $110 re ASX.
    If the projected profit for 2002 was $690m(2001 anticipated profit)+10% i.e 759m shouldnt that be revised to something like $417m a45% drop.
    IF so aren,t they obliged to issue a profit warning?

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