One of Taiwan's leading ODM companies, Wistron, has posted a 50% increase in gross profit for the first half of the year. The Taipei Times reports:
Wistron Corp (緯創), one of Taiwan’s leading computer and peripheral original design manufacturers (ODM), reported yesterday a first-half gross profit increase of 50 percent to NT$11.01 billion (US$350 million).
The company attributed the increase to strong shipments of notebooks and liquid-crystal displays (LCD). However, Wistron also warned of slower shipment growth of about 20 percent in the third quarter, falling to below 10 percent by the fourth quarter.
The firm’s current customer base includes large computer firms such as Dell Inc, Hewlett-Packard Co, Microsoft Corp and Sony Corp. Wistron’s product line consists of notebook computers, desktop PCs, servers, personal digital assistants and LCD TVs.
Wistron, once part of the design, manufacturing and services unit of Acer Inc (宏碁), was spun off in 2001. Earlier in the year, Wistron agreed to purchase the computer monitor business of Lite-On Technology Corp (光寶) for NT$9.2 billion.
“The business situation is in line with [our] original planning. The merger with Lite-On Technology will shift operating margins down slightly. Our second half margin projection is around 5.5 percent,” said Simon Lin (林憲銘), Wistron chairman and chief executive officer, during an investors’ conference yesterday.
As noted above, the company is expecting a slowdown in the Q3 and Q4. This slowdown is inline with earlier predictions by iSuppli and others. We noted this slowdown in contract manufacturing in Contract Manufacturing to Slowdown and Contract Manufacturing Growth Slows. Some are anticipating the slowdown in the industry will bring about some sort of consolidation.
Taipei Times: Strong shipments boost Wistron first half profits
No comments:
Post a Comment