Invensys 'turns corner' with loss

LOSSES at fallen industrial giant Invensys have hit £477m so far this year but departing boss Rick Haythornthwaite told investors that by meeting City operating earnings targets for two consecutive quarters the corner has been turned.

Having pulled off a controversial £2.7bn restructuring this year. Haythornthwaite said: 'Against a backdrop of increased financial stability and modest economic recovery, we are gaining a sense of real operational momentum.'

Long suffering investors remain unmoved, however. Shares in the one-time FTSE 100 stock drifted down ¼p to 16½p, not far from their all-time lows.

While operating profits in its four remaining core industrial controls businesses slumped by a third to £63min the half-year to end-September, the figure was in line with analysts' downwardly revised expectations.

That, however, was wiped out by £133m of asset write-downs and restructuring costs and £287m of losses and write-offs on disposals.

Hopes of a takeover have been dismissed by the City because of the group's twin 'poison pills' of £700m of debt and pension fund liabilities now topping £600m.