Hi Scotty, this is what is going to happen to
companies with asia exposure.
puts
Wednesday January 7, 3:12 pm Eastern Time
Amway Asia Sees "Significantly" Lower 2Q FY 98 Results
AMWAY ASIA PACIFIC LTD. Sees "Significantly" Lower Results for Second Quarter of Fiscal 1998
Jan. 7, 1998, Amway Asia Pacific Ltd. (NYSE:AAP - news) said it expects net sales and income to decline ''significantly'' in the second quarter of fiscal 1998 because of the ''financial turmoil in Southeast Asia and the regulatory environment in China.''
AAP commented that the ''difficult environment'' of first quarter fiscal 1998 has continued and is ''negatively impacting'' sales and profitability. The value of the currencies of Malaysia and Thailand, traditionally AAP's ''strongest and most profitable'' markets, has continued to weaken relative to the U.S. dollar
AAP noted that margins are expected to be ''particularly adversely impacted'' both because the Malaysia-Thailand region was historically AAP's ''most profitable'' region and because AAP is unable to fully absorb China's cost structure, resulting in an inability to receive any advantage from Amway China's tax holiday. "
AAP added that the ''second quarter is expected to be the weakest reported quarter in fiscal 1998, with improvements expected in the third and fourth quarters.''
For the second quarter of fiscal 1997, AAP posted net income of $24,714,000, or $0.41 per share, on net sales of $205,201,000.
opened QCOM feb 50 call. ag |
