Mon, Aug 25, 2003 - Page 10 News List

Quanta Computer second quarter net could grow 45%

BLOOMBERG

Quanta Computer Inc (廣達電腦), the world's largest notebook computer maker, probably boosted second-quarter profit by 45 percent, lagging sales growth, because Dell Inc and Hewlett-Packard Co placed bigger orders at cheaper prices.

Net income at Quanta probably climbed to NT$2.9 billion in the three months to June from NT$2 billion a year ago, according to the average estimate of three analysts surveyed by Bloomberg News. The Taiwanese company plans to announce its results tomorrow at 6 pm local time.

Sales, reported earlier, rose 95 percent to NT$65.3 billion in the same period as Dell and Hewlett-Packard, Quanta's biggest customers, gave more orders to contract manufacturers such as Quanta to cut costs. Its gross profit margin, or the percentage of sales a company earns, may have dropped to 4.4 percent from 7.8 percent a year ago as prices fell, according to the survey.

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