To: MikeM54321 who wrote (4542 ) 6/15/1998 6:49:00 PM From: MikeM54321 Read Replies (2) | Respond to
Re: Asia WarningsZila Reports Record Third Quarter Revenue Asian currency crisis again impacted revenues at Oxycal Laboratories. Sales of Oxycal's Ester-C(R) vitamin products were below expectation as a result of lower-than-anticipated purchases by Asian customers. Domestic sales growth was also somewhat lower than expected; the U.S. health food industry reported below-normal vitamin C sales, which industry sources attributed to the unusually mild winter."3M Discusses Second-Quarter Outlook due to economic weakness in Japan and Asia , modest overall U.S. growth and the increasing strength of the U.S. dollar -- the company expects second-quarter earnings to be below those in the same quarter last year. Earnings are estimated to be in the range of 90 to 94 cents per share on a diluted basis. The company estimates that currency effects will reduce second-quarter earnings by more than 10 percent. "We have a strong presence in Japan and Asia, and our businesses continue to be affected by the economic contractions in that area," said L.D. DeSimone, chairman and chief executive officer. "In the United States, we continue to see good demand in several businesses, paced by new products, but softness in electronics and certain other industries has held back overall growth." "At this juncture, we're assuming that Japan and Asia will remain weak, the growth of the U.S. economy will slow somewhat in the second half and the U.S. dollar will remain strong," Innova sees reduced sales, EPS in Q2 continuing turmoil in the Asia/Pacific market has caused a softening in the overall market for telecommunications equipment. It said it currently envisions this softness extending into the third and possibly subsequent quarters and expects to continue to see significant pricing pressure. BENCHMARQ sees Q2 loss Asian economic crisis and other market conditions for the revenue shortfall. Previously, the company reported that its backlog had decreased and that it would be much more dependent on orders that are received and shipped in the same quarter. BENCHMARQ attributed the margin declines to price pressure, in large part due to Asian currency devaluations and continued softness in the semiconductor industry, inventory reserves and reduced factory utilization. Millipore Reduces Outlook for Second and Third Quarters The strengthening dollar is a factor, as well as the continued turbulence in Asian economies, particularly the Japanese recession. To a limited extent, lower revenue expectations in the food and beverage industry are also contributing to the earnings shortfall.
