Tuesday, October 18, 2011

Eng Tek sinks further on Thai flood woes

KUALA LUMPUR: ENG TEKNOLOGI HOLDINGS BHD [] shares continued fall on Tuesday, Oct 18 after the company said that it expected the floods in Thailand would negatively impact the group's overall performance in 4Q2011.

At 3.10pm, Eng Tek fell 16 sen to RM1.58 with 3.26 million shares done.

The company on Oct 18 issued profit guidance for the three-month financial period ending Dec 31, 2011 following the impact of the severe flooding in Thailand on its operations there.

'The management views the loss to be significant since Thailand's plants house half of Eng Tek Group's machining capacity,' it said in a statement to Bursa Malaysia.

Eng Tek said the floods in Ayutthaya, Thailand have now caused both ETHB Group's factories in Ayutthaya to be inundated by water.

'In addition, Eng Tek's subsidiaries in China and Philippines have also experienced disruption to their production as a certain proportion of their output was meant for their major customers in Thailand situated in the flood affected areas.

'The whole hard disk drive industry in Thailand is facing major disruptions as a result of the floods. In the meantime, certain of Eng Tek Group's production have been redirected to other plants to maintain supply to unaffected customers,' it said.


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