ROUNDUP: Yahoo's Koogle to step down as CEO; Q1 profits seen below forecasts

SAN FRANCISCO (AFX) - Yahoo Inc, whose shares were suspended amid rumours of a takeover or an alliance announcement, ended the day by issuing its second profit warning this year and saying that Tim Koogle, the man credited with steering the company into profit, is to relinquish his role as chief executive. The announcement came several hours after the shares were suspended on NASDAQ. In a statement issued after the market close, Yahoo said Koogle will step down as CEO but continue as chairman. Koogle, who joined the company in 1995, told analysts during a conference call that he will remain as an "active and dedicated"chairman. The reshuffle comes a week after Yahoo introduced a 'poison pill' defence into its shareholding structure as a means to protect it against a hostile takeover. It also comes after three top level departures from its international business, including that of Fabiola Arrendondo, managing director of its European operations. "The board and I have decided to continue to pro-actively build out our senior management bench strength across the company in order to prepare for our next stage of growth," Koogle said in a statement. "We are excited about bringing in great new talent to complement our existing team." News of Koogle's move came as the company warned that first quarter and full year profits will fall well below Wall Street forecasts due to the continued slump in the online advertising market. The company now expects to breakeven in the first quarter, well down on Wall Street forecasts for EPS of 5 cents, on sales of 170-180 mln usd, substantially lower than the 232.6 mln ThomsonFinancial/First Call estimate. Speaking in a conference call with analysts after the release of the figures, chief financial officer Sue Decker said the company is aiming for breakeven for the whole of 2001, compared to consensus EPS forecasts of 37 cents. "It is becoming very apparent that external conditions have weakened," Decker said. "First, businesses have frozen their commitments to short-term discretionary expenses such as marketing. "In addition, this development has further tightened funding and return assumptions by investors in newly-formed companies, which is having the effect of accelerating the transition away from the dot.com group "Both of these factors are having a significant affect on our business and unfortunately neither of them are factors we can control in terms of their impact on the top line," Decker said. The warning is the second Yahoo has issued in as many months and confirms that the company is far from insulated from the sharp decline in the online advertising market. The group's shares were already near their 52-week low of 21 usd before the announcement was made and fell further in after-hours trade.

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