The language of profit warnings: a case of denial, defiance, desperation and defeat

Purpose Taking a communication perspective, the paper explores management's rhetoric in profit warnings, whose sole purpose is to disclose unexpected bad news. Design/methodology/approach Adopting close-reading approach text analysis, authors analyse three warnings of now-collapsed Carillion, contrasting with contemporaneous investor conference calls discuss and board minutes recording boardroom discussions case company's precarious financial circumstances. The analysis applies an Aristotelian framework, focussing on logos (appealing logic reason), ethos authority) pathos emotion) examine how Carillion's management used language persuade shareholders concerning adverse Findings As non-routine communications, displays mimics characteristics routine communications by appealing primarily (logic reason). rhetorical profiles meeting differ from suggesting different version story behind scenes. frame as representing stages follows: denial, defiance desperation and, for our company, ultimately, culminating defeat. Research limitations/implications research limited study one company. Originality/value views artefact examines these corporate documents elucidate their key features. provides novel insights into role vehicle/genre delivering