Royal issues profit warning

Royal Group Technologies Ltd. has cut its sales forecast for the three months ending March 31 to between $390-million to $410 million, down from a previous range of $420 million to $440 million. The announcement sent the company’s stock into a tailspin last week as shares fell 23%, the stock’s lowest level since Royal Group’s 1994 IPO.
The Woodbridge, ON-based company said on-going problems at its U.S. window coverings division accounted for much of the company’s reduced profit projections for the second quarter. The company also said cold temperatures, which have reduced orders, rising resin prices and the possibility of war with Iraq, have all also adversely affected sales.