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Trek 2000 board warns of expected Q3 loss

TREK 2000 International is expected to report losses for the three months and nine months to Sept 30, the board said in a profit warning on Tuesday.

The group could sink into the red on lower sales revenue and a shrinking gross profit margin, said the board, citing a preliminary assessment of financial results that will be publicly released by Nov 7.

The board said that global economic uncertainty has led to market uncertainty and subdued customer demand, even as a stronger greenback hurt regional demand and ate into profits.

"In the meantime, shareholders and potential investors are advised to exercise caution when dealing in the shares of the company," the board added.

Trek 2000 previously reported a second-quarter net profit of US$77,000, down sharply from US$2.06 million the year before. The company was also rocked in April by an independent review from forensic accountants that flagged potential legal breaches.

sentifi.com

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