Iwerks Attributes Loss to Weak Asian Economies

Iwerks Entertainment Inc. expects to post a loss in its second quarter as sales and profits fall below financial analyst estimates. Sagging sales are being attributed to the economic slump in the Asia Pacific region.

Iwerks said Asian sales in its second quarter, which will end Dec. 31, will be $3.5 million to $4 million lower than in the same period last year.

The company said it expects to post a loss of $2.7 million to $3.4 million in the current quarter.

In a prepared statement, the company’s chief executive, Roy A. Wright, said, “Many of the Asian projects which were to include Iwerks’ attractions have been slowed or have halted development. This is due to the relative cost of our products, which has risen as Asia’s currencies have weakened. We do not expect an immediate reversal of this trend.”

Iwerks, based in Burbank, is a maker of large, 3D-screen theaters and ride simulation events at entertainment centers, shopping centers and amusement parks in the United States and overseas.