Packaging group Ire-Tex Group said at its agm in Dublinbid talks were still ongoing following two approaches made for the company in January.
The consequent demand for management time and resources, combined with market weakness, had adversely affected trading in the first half.
Ire-tex said its 41.8 per cent joint venture in Oregon in the US has experienced a serious downturn in demand putting its future in some jeopardy. This may require consideration of a write-down of the group's investment in this venture.
The plant in Limerick remains very busy, with some production being switched to Leixlip in Co Kildare to balance output, the company said.
On the distribution side the group's Northern Ireland companies and the joint venture in Galway have held their own in market terms.
The company's 33 per cent joint venture in the Far East continues to make good progress.
The balance sheet and cash position remain strong and a better second half is anticipated, the company said.