NCR profit warning hits shares

Blaming a fall in sales to retail clients, NCR's figures reflect the wider problems that have besieged the technology sector and have seen industry giants such as Microsoft, Compaq and HP all issue profit warnings.

NCR said it now anticipates fourth-quarter turn over will be $1.79bn, up two per cent on the same period last year but well short of the five per cent growth forecast.

Lars Nyberg, chairman and CEO of NCR, said in a statement: "We anticipate continued slowness in the retail area during the first half of 2001. Cost reduction measures initiated during the fourth quarter, along with further actions, will help offset this situation."

Earlier this month NCR announced a seven-year outsourcing contract with Royal Bank of Canada, the country's largest financial institution, worth approximately $173m.

NCR shares closed at $42.94 - down 12.5 per cent - at the end of Friday's trading.