Music and film company PolyGram jolted markets Thursday by warning that an absence of major CD releases would slash first-quarter profit.
PolyGram shares fell $3.31 to $48.75 on Thursday on the New York Stock Exchange. The stock has fallen 23% from its 52-week high of $63.06.
PolyGram said first-quarter sales would be broadly steady, but music sales and margins would suffer, mainly from a weak release schedule.
"Contrary to previous years, there were no major international releases, and therefore sales in the quarter incurred relatively high marketing and recording costs," PolyGram said.