Kylie: Number one

According to latest figures, only the UK and France saw an increase in sales of CDs and cassettes in the first half of 2001, with sales in the United States, which accounts for 40% of the world market, down 5%.

Overall global sales were down 5%.

In the past year, EMI has seen its stock market value fall from nearly �10bn to �1.9bn.

The company said its trading expectations had not changed since its September forecast.

'Leadership skills'

Mr Levy is credited with building Polygram into the world's biggest music company, developing the careers of artists such as Bryan Adams, Sheryl Crow and U2.

He also led the company's expansion into film with such productions as Four Weddings and a Funeral and Trainspotting.

EMI is the world's third-largest record company, with a claimed market share of 14%.

Its artists include The Rolling Stones, Mariah Carey and Kylie Minogue, currently number one in the UK singles chart.

EMI chairman Eric Nicoli said Mr Levy brings a "unique blend of creative, commercial and leadership skills to take the business forward to the next level."

EMI shares were down nearly 2% at 272.5 on the news.