Compal Electronics’ earnings per share (EPS) hit a 10-year low of NT$1.95 in the fourth quarter of last year due to significant foreign-exchange losses caused by the appreciation of the New Taiwan dollar, according to a company filing with the Taiwan Stock Exchange (TSE).
Compal suffered a NT$415 million loss in the fourth quarter from non-core businesses, with foreign-exchange losses accounting for NT$350 million. The company also experienced a loss of NT$65 million from investments in its affiliated companies, including Toppoly Optoelectronics – an LTPS (low-temperature polysilicon) TFT-LCD panel maker – and Accesstek, an optical disc drive specialist.
The company had combined losses of NT$813 million for the first three quarters of 2004.
Although Compal’s revenues last year exceeded NT$200 billion for the first time ever, the maker is facing thinner margins on its core notebook business, and will probably not achieve its goal of shipping 10 million notebooks this year unless it lowers its margins further, the sources suggested.
In related news, currency-appreciation pressure has also led Inventec to report full-year EPS of NT$1.13 for last year, which the company stated was a new historic low. The company generated profits of about NT$2.4 billion in 2004, down 42.9% on year, according to a company filing at the TSE yesterday.
|
Compal Electronics: Financial results, 2003-2004 (NT$m) | |||
|
|
2003 |
2004 |
Y/Y |
|
Sales |
162,225 |
211,387 |
30% |
|
Gross profit |
13,277 |
13,071 |
(1%) |
|
Operating profit |
8,659 |
8,307 |
(4%) |
|
Pre-tax profit |
11,338 |
7,203 |
(36%) |
|
EPS (NT$) |
3.80 |
1.95 |
|
|
Gross margins |
8.2% |
6.2% |
(24%) |
Source: company, compiled by DigiTimes, March 2005.
Article translated by Jessie Shen and edited by Michael McManus
