SINGAPORE - Bearings and seals distributor Raffles United Holdings, formerly known as Kian Ho Bearings, told shareholders on Monday (July 11) that it expects a marginal net operating profit for the first half of the year to be "significantly lower as compared to the corresponding period last year".

This is mainly owing to active inventory clearance at reduced prices during the period, to generate positive cashflow in light of tough market conditions.

The firm also said "given the volatility and uncertainty of the foreign exchange market during the period, the group was exposed to significant unfavourable foreign exchange fluctuations".

The group will release further details in its results for the first half of the year next month.