Singapore's Creative Tech expects Q3 operating loss; sells building
Sunday, March 23, 2008; Posted: 08:08 PM

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SINGAPORE, Mar 24, 2008 (Thomson Financial via COMTEX) -- CREAF | news | PowerRating

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| PR Charts -- Creative Technology Ltd, the Singapore-based manufacturer of MP3 players and other consumer electronic devices, said Monday it will incur an operating loss in the third quarter to March due to higher operating expenses arising from the weaker US dollar.

Sales are also expected to come in below target at about 150 million US dollars, compared with 262.2 million dollars in the previous quarter.

But Creative said it still expects to achieve a net profit for the quarter as it recognizes exceptional gain from investments of about 20 million dollars. It did not provide a net profit estimate.

The gain will primarily come from the sale of its headquarters building in Singapore for 180 million dollars. Under the deal, the building will be leased back to Creative for five years.

Creative expects to book a gain of about 144 million dollars from the sale, which will be recognized over the five-year lease term.

(1 US dollar = 1.38 Singapore dollars)

jonathan.burgos@thomson.com

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