Invensys wipes £60m off profits Invensys shares plunged on Friday after the engineering group warned problems with the installation of control and safety systems at Chinese nuclear power stations and setbacks with a number of rail contracts would wipe £60m from this year's expected operating profits. Shares in the FTSE 250 group fell as much as 27 per cent after it said £40m would be lopped from its underlying operating profit this year because of unexpected difficulties in the Chinese work. The setback was compounded by a separate issue in its rail division, where it gave warning of additional costs and delayed revenue recognition on a small number of undisclosed contracts. This would cut this year's operating profit by a further £20m. Invensys reported an underlying operating profit of £262m in the year to March 31 2011 and had expected to report a rise in operating profits this year but said on Friday that it now expected underlying operating profit to fall "significantly" year-on-year. The company said the difficulties related to the first of three contracts it had signed to install and commission control and safety systems for eight Chinese nuclear reactors. A review of engineering requirements and associated costs had shown that the first contract - covering four reactors - would be delayed and require additional work. The profit warning eclipsed the announcement by Invensys's rail arm that it had won more signalling work from Network Rail, the body that looks after the UK's railway network. Shares in Invensys were 22 per cent lower at 176.60p in early morning trading in London, giving it a market capitalisation of £1.5bn.