Frencken Group Limited provided group earnings guidance for the third quarter ended September 30, 2012. For the quarter, the group expects to report a loss, as compared to a net profit recorded in third quarter of 2011. This is attributable to the following factors.

Softer gross profit margin of the Mechatronics Division in third quarter of 2012 due to a shift in sales mix and higher production overhead costs. As a result, this division is expected to report lower net profit in third quarter of 2012, as compared to third quarter of 2011. Higher production overhead costs, low operational efficiencies for automotive products and the depreciation of the Euro against the Malaysian Ringgit are expected to result in the EMS Division registering a loss in third quarter of 2012.