Blames unfavorable foreign currency exchange rates

Asustek claims it will incur losses of up NT$2 billion, or US$60 million in Q4 2008 due to fluctuations in foreign currency exchange rates.

The company attributes the loss to the euro's weeknes against the greenback in Q4, and says it is already taking action to prevent such losses in the current quarter. Asustek's Chief Financial Officer David Chang expects the loss to range from NT$1.5 billion to NT$2 billion.

Last week the company said it would report a negative operating margin for Q3 2008, and that it has failed to meet its shipment targets for motherboards, notebooks and netbooks.

Asustek shares fell 60 percent in 2008, compared to a 46 percent decline of the TAIEX index.

Its competitor, Acer, claims it was not significantly affected by foreighn exchange issues.

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