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Inventec Q1 profit falls on weak demand, forex loss

Inventec Q1 profit falls on weak demand, forex loss

Taipei, May 11 (CNA) Taiwan's Inventec Corp. (???), one of the world's largest contract laptop makers, said Monday that its first-quarter net profit fell 34 percent compared with a year earlier, missing expectations as PC demand weakened and exchange losses rose. The company, which assembles laptops for Hewlett-Packard Co. and Dell Inc., said net profit in the January-March period fell to NT$1.28 billion (US$41.7 million), or NT$0.41 per share, from NT$1.947 billion, or NT$0.53 per share, in the first quarter of 2014. Inventec's first-quarter exchange rate loss rose by NT$392 million from a year earlier to NT$485 million because of the strength of the Taiwan dollar against the U.S. dollar. Consolidated revenue in the first quarter declined 23 percent year-on-year to NT$89.30 billion, and operating income fell 18 percent year-on-year to NT$1.61 billion. Inventec Chief Financial Officer Yu Chin-pao (???) said the first quarter would likely be the company's weakest in 2015, citing delays in PC buying before the anticipated launch of Microsoft Corp.'s Windows 10 operating system later this year. Yu projected that Inventec's notebook shipments would increase quarter by quarter in 2015 as Windows 10-based products are expected to begin mass production in July or August. He estimated double-digit growth in Inventec's second-quarter notebook shipments from about 3.5 million units shipped in the first quarter because of a pick-up in commercial PC shipments. Inventec shares ended down 1.87 percent at NT$20.95 Monday on the Taiwan Stock Exchange before the company's earnings announcement. (By Jeffrey Wu)


Updated : 2021-09-29 02:43 GMT+08:00