Wednesday July 1, 07:50 AM
UPDATE 1-National Express warns on profits, CEO to go
LONDON, July 1 (Reuters) - British transport operator National Express (LSE: NEX.L - news) said the loss-making performance of its East
Coast rail franchise would hurt first half profits, adding that its Chief Executive will stand down this summer.
The company, which rejected a bid approach from Scottish rival First Group on Monday, said the troubled East Coast route between London and Edinburgh would lose 20 million pounds ($33.17 million) in the six month period to end June.
It said it had tried and failed to renegotiate the terms of the agreement with the British government's Department for Transport, and could only commit to funding the franchise until later in 2009.
National Express, which also has operations in North America and Spain, also said that Chief Executive Richard Bowker will leave the company at the end of August.
It added that it was making progress servicing its billion pound debt-pile, which analysts expect to eventually be tackled with a rights issue.
($1=.6029 Pound)
(Reporting by John Bowker; Editing by Hans Peters) Keywords: NATIONALEXPRESS TRADING/
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