This takes total number of warnings issued since the start of April to 15
By JOYCE HOOI
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THREE more companies, Texchem-Pack Holdings (S) Ltd, Valuetronics Holdings and China Sky Chemical Fibre Co, have joined in the flurry of profit warnings as the reporting season gets underway.
Texchem-Pack Holdings, a packaging products firm, announced yesterday that it expects to report a net loss for the first quarter of FY2009, against a net profit of RM2.25 million (S$935,000) for the same period a year ago.
The Q1 net loss is also expected to be greater than its RM4.5 million net loss for Q4 FY2008.
'The effect of the worldwide economic crunch and the contraction in demand for electronics and electrical products globally has led to lower capacity utilisation and resulted in the company having to operate its production facilities at below breakeven cost,' the group said in a statement.
At Valuetronics Holdings, net profit for the financial year ended March 31, 2009 will be lower compared to the year before, the company warned.
It had reported a 21.2 per cent drop in net profit for the nine months ended Dec 31, 2008 to HK$55.8 million (S$10.8 million) from HK$70.8 million previously, citing a HK$10 million one-off charge for the estimated loss of assets, due to the flash floods at its Danshui plant in June last year.
Like Texchem-Pack Holdings, Valuetronics has not been spared by the global downturn. 'The severe global economic slowdown has increased the risks of doing business, and greater adversities now prevail in the operating environment,' it said.
'Challenging issues which the group have to contend with include uncertainty in demand patterns and customer orders, deteriorating credit conditions, significant fluctuation in exchange rates of major currencies and commodity prices,' the integrated electronics manufacturing services provider stated in an announcement.
Warning of a net loss for the three months ended March 31, 2009, China Sky said it has been hit by relatively high polyamide chip (raw material) prices, depressed average selling prices of nylon yarn, and weak demand from customers leading to low capacity utilisation of its production capacity.
It said the financial performance of the company for the rest of 2009 will be adversely affected by the current challenging economic conditions and financial uncertainty.
The three firms will bring the total number of profit warnings issued since the start of the month to 15, with most of the firms warning of losses.
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