Friday, October 14, 2011

Eng Tek falls on impact of Thai floods

KUALA LUMPUR: ENG TEKNOLOGI HOLDINGS BHD [] shares continued to fall on Friday, Oct 14 after the company said the floods in Thailand that had forced the temporary shutdown of its operations in that country would negatively impact its revenue for the financial year ending Dec 31, 2011.

At 9am, the shares were down 12 sen to RM1.88 with 44,500 shares traded.

It said on Thursday that for the financial year ended Dec 31, 2010, the Thai operations contributed approximately 40% to its revenue. 'Nevertheless the quantum of the impact cannot be determined at this juncture,' it said.

On Oct 11, Eng Tek said that the floods in Ayuththaya had resulted in the shutdown since Oct 8 of Engtek (Thailand) Co Ltd and that the Thai authorities had issued an evacuation order for the industrial zone in which Altum Precision Co Ltd. was located although the area has yet to be affected by the flood waters.

Eng Tek said it was aware that several of the group's key customers and suppliers had also been affected by the floods and this has resulted in significant disruption to the supply chain of key hard disk drive components.

The company said it was currently unable to ascertain the amount of damage and loss to property, plant and equipment or to quantify the exact financial impact because the water level has not subsided and there was very limited access to these facilities.

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