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Inventec reports lowest profit in 10 quarters

Inventec reports lowest profit in 10 quarters

Taipei, Aug. 11 (CNA) Taiwan's Inventec Corp. (???), one of the world's largest contract laptop makers, reported Tuesday its lowest quarterly net income in the past 10 quarters as expenses and exchange losses rose. The Taipei-based company, which assembles laptops for Hewlett-Packard Co. and Dell Inc., said its second-quarter net income stood at NT$931 million (US$28.86 million), the lowest level since it posted NT$342 million in the fourth quarter of 2012. The April-June net profit declined by 27 percent from the previous quarter and by 38 percent from a year ago, as Inventec booked an exchange rate loss of NT$87 million and increasing operating expenses for the quarter. The contract manufacturer's second-quarter operating expenses reached NT$3.94 billion, up 8 percent from the first quarter and up 2 percent from the same period a year ago. Inventec Chief Financial Officer Yu Chin-pao (???) told an earnings briefing that the second quarter would likely be the company's weakest in 2015, with its operations expected to pick up in the third quarter thanks to the launch of new products by its customers. Inventec General Manager Huang Kuo-chun (???) forecast that his company's PC shipments will grow by up to 10 percent in the second half of this year compared with that of the first half despite a bearish outlook across the PC industry. David Ho (???), chief executive officer of Inventec's handset subsidiary, Inventec Appliance Corp. (???), which assembles smartphones for China's Xiaomi Inc., said he sees an increasing contribution to the group's revenue from smart handheld devices. Ho estimated that his company's smart handheld device shipments -- including smartphones and wireless speakers -- will grow from 50 million units last year to between 60 million and 70 million units this year. Shares in Inventec ended down 1.77 percent at NT$16.65 in Taipei on Tuesday before the company announced its earnings results. (By Jeffrey Wu)


Updated : 2021-09-24 04:47 GMT+08:00