While we reported a few days ago that Ritek are starting CD-R production in China (together with CMC), Ritek now announces a major loss because of exchange rate-linked charges and tighter margins in compact discs.
The world's largest CD-R disc maker said it now expects a net loss of NT$3.25 billion, or NT$1.72 a share, on sales of NT$20.32 billion. That compared with a net profit of NT$2.08 billion and sales of NT$26.31 billion announced earlier in April. |
The company blamed the profit shortfall mainly on NT$1 billion in currency exposure due to the sharp rise of NT dollar against the US dollar in the second quarter. Also eroding its profit base, Ritek said, were higher costs of plastic material used in discs, which doubled in the first half amid oil supply concerns raised by refreshed Middle East tension.
The oversupply remains and the prices of CD-R discs aren't getting up. We hope the company will survive...
Source: digitimes
