January 26, 2005

Royal Group issues quarterly loss warning

TORONTO

Royal Group Technologies Ltd., a building supply manufacturer embroiled in lawsuits, accounting investigations and an executive suite upheaval, is warning of a fourth-quarter loss of $30 million to $35 million.

The Toronto-based firm said Monday it expects a loss of 39 to 45 cents per share for the quarter ended Dec. 31.

A year earlier, Royal Group had earnings of four cents a share, or 18 cents per share after a tax adjustment.

The anticipated loss reflects the effects of the falling U.S. dollar, increases in raw material costs, settlement of a legal matter involving intellectual property, investigation costs and business disruptions, as well as a writedown of assets employed in Royal Group’s Mexican operations.

The Canadian Press

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