Taiwan assembler Pegatron’s quarterly profit tops estimates thanks to non-operating gains
Taiwan’s Pegatron Corp. ( ), a key supplier for Apple Inc.’s iPhones, reported on Monday a sharp year-on-year rise in quarterly profit, topping expectations, powered by non-operating gains from asset disposal and interest.
The company’s second-quarter net income grew 211 percent from a year earlier to NT$4.656 billion (US$147 million) with earnings per share (EPS) of NT$1.82, which exceeded market expectations of between NT$1.3 and NT$1.4.
Pegatron’s non-operating income was NT$1.535 billion in the April-June quarter, an increase of 176 percent from the same period of last year.
The company posted second- quarter revenue of NT$218 billion, down 21 percent from the previous quarter but up 2.6 percent from a year ago, which chief financial officer Charles Lin attributed to “product transition during the low season and weaker-than-expected demand for notebooks.”
Driven by better demand, revenue from communication devices grew by 42 percent year-on-year and their contribution to revenue increased to 54 percent from 39 percent in the same period of 2014, Lin said.
Reflecting the challenging PC industry, however, revenue from the computing segment declined by 32 percent year-onyear, while that of consumer electronics devices, which include tablets and gaming consoles, fell by 28 percent year-onyear due to continuous weaker demand for tablets, he added.
Lin said Pegatron expects its notebook shipments to grow by “high single digits” in the third quarter and shipments of motherboards and desktop PCs to grow by “mid single digits,” while revenue from the non-computing segment is forecast to grow by 20-30 percent.
Shares in Pegatron ended up 4.09 percent at NT$86.5 Monday on the Taiwan Stock Exchange before its earnings announcement.