Metal Component Engineering Ltd. provided earnings guidance for the full year ended December 31, 2011. For the year, the company expects revenue to be lower than the corresponding period in fiscal year 2010. This was mainly due to a decline in sales from the Mechanical Integration business (M1) in fiscal year 2011, as well as the decline in sales from the Hard Disk Drive Components (HDD) business in the fourth quarter of 2011 as the HDD industry was generally adversely affected by significant supply chain disruptions caused by the recent flooding in Thailand. The Group expects to record a net loss in fiscal year 2011, mainly due to the aforementioned decline in revenue in fiscal year 2011; the impairment of intangible assets relating to its MI business; and the incurrence of restructuring charges as part of consolidation efforts in MCE China and MCE Malaysia. These consolidation efforts seek to intensify asset utilization, improve economies of scale by optimizing overheads, and realize value through disposal of non-core assets.