Schawk's share price dropped as much as 37% on the New York Stock Exchange after it revealed that it expected to make a loss of $30m to $40m (£20.9m to £27.9m) for the year, compared to an operating income of $60.5m the previous year.
Given its expected results, the US-based company also revealed that it was evaluating compliance with the financial covenants under its debt agreements.
If it determines that it is not in compliance, the company said that it would seek any necessary waivers or amendments from its lenders.
"Failure to obtain such waivers or amendments could result in a default and related acceleration of the company's debt and render unavailable additional borrowings under the company's credit facility," Schawk said.
The company added that there could be no assurance that it would be able to obtain the necessary waivers or amendments "on commercially reasonable terms, or at all" if it determined itself not to be in compliance.
Schawk posted a 9.2% decline in net sales, down to $489.2m and said it expected to record a goodwill impairment charge in the region of $20m to $30m when its final results are published.
Shawk's shares had recovered slightly at the time of writing and were trading at $6.31.
Schawk shares plummet as group issues profit warning
Shares at the global packaging pre-press specialist Schawk have nosedived after the company was forced to issue a profit and debt default warning ahead of its 2008 full-year results.
