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Apple casing supplier reports 15.8% drop in October sales

Apple casing supplier reports 15.8% drop in October sales

Taipei, Nov. 5 (CNA) Catcher Technology Co., a Taiwan-based metal casing supplier to Apple Inc., said Saturday its consolidated sales for October fell 15.8 percent from a month earlier due to a shutdown of its operations in Suzhou in China's Jiangsu Province. In mid-October, operations at Catcher's Suzhou facility were suspended by Chinese authorities after an unusual odor was detected at the plant. After the shutdown, the company had forecast its sales in October would fall 20 percent from September, and 40 percent in November if its Suzhou operations did not resume by then. However, it turned out that the October sales were better than expected since the company had assigned its facilities in other Chinese cities to assist. In addition, the stock of Catcher's semi-finished products made up the shortage of production capacity from the shutdown. In October, Catcher posted NT$3.21 billion (US$107 million) in consolidated sales, compared with NT$3.82 billion in September. The October figure was 44.9 percent higher year-on-year. The month-on-month decline in October sales snapped a rising streak in the previous five months. In the first 10 months of this year, Catcher registered NT$29.99 billion in consolidated sales, up 78 percent from a year earlier. Catcher said it is striving to improve working conditions at its Suzhou plant by testing the renovation work it has finished since the shutdown. As long as the Chinese authorities certify the renovation, the operations at the plant is expected to resume in mid-November, it said. Described as one of "poison apples" in the Apple supply chain by Chinese environmentalists, Catcher witnessed a tumble in its share price in mid-October after the suspension of its Suzhou plant. Before the shutdown incident, Catcher had been one of the favorite stocks of foreign institutional investors due to strong growth of its bottom line. In the third quarter, the company posted NT$3.69 billion in consolidated net profit, up 55.6 percent from the second quarter and also up 250.3 percent from a year earlier, on the back of the booming smartphone market. (By Lo Hsiu-wen and Frances Huang)


Updated : 2021-04-22 04:01 GMT+08:00