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Asustek Q3 earnings up 39%

Asustek Q3 earnings up 39%

Taipei, Oct. 30 (CNA) Taiwan-based Asustek Computer Inc., one of the world's leading personal computer vendors, said Tuesday that it enjoyed an increase of about 39 percent in earnings for the third quarter on the back of an increasing share of the global PC market. Meanwhile, foreign exchange profits and gains resulting from the disposal of part of Pegatron Corp. shares it owned also contributed to the leap in third quarter earnings, Asustek said. During the July-September period, Asustek posted NT$6.71 billion (US$229 million) in earnings, compared with NT$4.82 billion recorded a quarter earlier. The third quarter earnings were also up 43 percent from a year earlier. Earnings per share (EPS) for the third quarter stood at NT$8.92, up from NT$6.4 recorded in the second quarter. The third quarter EPS beat an earlier market estimate of about NT$8.5. Consolidated sales of Asustek for the third quarter rose 18 percent from the second quarter and also gained 9 percent from a year earlier to NT$111.44 billion, while its gross margin fell to 13 percent from 14.2 percent recorded a quarter earlier. According to market advisory firm Gartner, Asustek shipped 6.38 million PCs worldwide in the third quarter, up 11.8 percent from a year earlier. Its global market share in the third quarter rose to 7.3 percent from 6.0 percent recorded a year ago. In the first nine months of this year, Asustek posted NT$21.97 in earnings per share, which came close to NT$21.99 recorded for the entire 2011. Asustek Chief Financial Officer David Chang said the disposal of Pegatron shares yielded a profit of more than NT$300 million, while foreign exchange gains totaled NT$1.18 billion. In the third quarter, notebook computers accounted for 59 percent of Austek's total sales, tablet computers made up 16 percent, motherboards made up 13 percent and netbook computers represented 4 percent. During the same period, the Asia-Pacific market accounted for 42 percent of the PC vendor's total sales, while Europe made up 33 percent. (By Lo Hsiu-wen and Frances Huang)