FTSE companies profit vs share price

[elster]

Well was watching BBC news yesterday morning and they were saying Aviva made profits of about £2 billion, but after the drop in the share price they made a loss of £885 million.

How does this work exactly? Any financial people care to explain please. Thanks.

[esselte]

Do they hold shares in themselves?

[PD9]

Can we hijack this thread to post pictures of hotties for the weekend??

[elster]

PD9 said:

Can we hijack this thread to post pictures of hotties for the weekend??

Feel free to as soon as some explains this to me.

Thanks

[escargot]

Dunno.

[elster]

esselte said:

Do they hold shares in themselves?

I don't know. I am waiting for a more knowledgeable person to tell me what they know.

[esselte]

elster said:

esselte said:

Do they hold shares in themselves?

I don't know. I am waiting for a more knowledgeable person to tell me what they know.

Needs to be more knowledgeable than me too.....

[PD9]

elster said:

esselte said:

Do they hold shares in themselves?

I don't know. I am waiting for a more knowledgeable person to tell me what they know.

Example

Aviva (a parent company of NU) posted profits. Although they also can lose money due to main units (Norwich Union, and other companies owned etc) not making any money and posting losses. So the parent company made a profit of £££ however the some of the units didnt not meet ends.

Edited by PD9 on Friday 6th March 15:21

[northandy]

elster said:

Well was watching BBC news yesterday morning and they were saying Aviva made profits of about £2 billion, but after the drop in the share price they made a loss of £885 million.

How does this work exactly? Any financial people care to explain please. Thanks.

No, what they are saying is that the loss of 885 million had wiped 33% of the share value.

http://news.bbc.co.uk/2/hi/business/7925236.stm

[Merc fan]

TheBBC said:

Its losses for 2008 were £885m, after a profit of £1.5bn in the previous year, as it was hit by the downturn in the financial markets.

Edited by Merc fan on Friday 6th March 15:32

[elster]

northandy said:

elster said:

Well was watching BBC news yesterday morning and they were saying Aviva made profits of about £2 billion, but after the drop in the share price they made a loss of £885 million.

How does this work exactly? Any financial people care to explain please. Thanks.

No, what they are saying is that the loss of 885 million had wiped 33% of the share value.

http://news.bbc.co.uk/2/hi/business/7925236.stm

No that is not what was said, definitely what I said. I am not senile and did see if twice or three times repeated.

The BBC online haven't reported it. It was the man who does for the LSE on BBC breakfast news who was stating this. The one with the huge bonce.

[northandy]

elster said:

northandy said:

elster said:

Well was watching BBC news yesterday morning and they were saying Aviva made profits of about £2 billion, but after the drop in the share price they made a loss of £885 million.

How does this work exactly? Any financial people care to explain please. Thanks.

No, what they are saying is that the loss of 885 million had wiped 33% of the share value.

http://news.bbc.co.uk/2/hi/business/7925236.stm

No that is not what was said, definitely what I said. I am not senile and did see if twice or three times repeated.

The BBC online haven't reported it. It was the man who does for the LSE on BBC breakfast news who was stating this. The one with the huge bonce.

Sounds like the crunch has got to him and hes lost his marbles then !.

[rpguk]

elster said:

Well was watching BBC news yesterday morning and they were saying Aviva made profits of about £2 billion, but after the drop in the share price they made a loss of £885 million.

How does this work exactly? Any financial people care to explain please. Thanks.

It's cause and effect surely. It's not that the share price dropping caused the drop in profits but that the drop in share price reflected the conditions that led to the drop in profits. A company with reduced future earnings will of course be worth less then one with a healthy future and this will be priced into it's share price.

Edited by rpguk on Friday 6th March 21:06