Areva shares plunge after it drops financial targets

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Shares in Areva have plunged after the French nuclear firm suspended its financial targets for 2015 and 2016.

The firm blamed delays to its Finnish nuclear project, a slower than expected restart for its Japanese reactors after the 2011 nuclear accident in Fukushima and a "still lacklustre" nuclear market for the decision.

Areva said it was reviewing both its mid-term funding plan and future goals.

The shares were down 15.5% in morning trading.

However, Areva said both its revenue and profit forecasts for this year would not be affected.

Areva, which is 87%-owned by the French government, said it would present a new financial outlook for 2015-2017 by the time of its full-year results.

The firm's latest announcement follows a series of warnings in recent months. In August, it reported a €694m (£555m) loss for the first half of the year and said 2014 revenue would fall 10%, more than the 2-5% drop it originally forecast in February.

In October, it also announced capital spending cuts and new asset sales.

The firm has been hit by a drop in demand for nuclear power following the 2011 nuclear accident in Fukushima, which was triggered by a massive earthquake and tsunami, and the rise in the use of shale gas in the US.