Invensys issues profit warning

Invensys said its profit for the year would be hit by higher costs in its rail signalling division and in work on control and safety systems in eight nuclear reactors under construction in China.

The group said as a result of the operational issues, its operating profit for the year to end-March 2012 would be significantly below last year's.

The company, which also makes controls for washing machines, had been targeting an improved performance this year.

It said delays and extra engineering in China would cost it an additional £40m, while additional costs in rail contracts in Saudi Arabia, Turkey and the UK would hit performance by about £20m.