Compal Electronics Inc (
Shipments are expected to decline by up to 15 percent to around 1.7 million units, Compal president Ray Chen (
But the company maintained an upbeat outlook for the notebook computer industry for this year.
"We are very optimistic about the industry as information from our customers indicates the sector will grow by between 18 percent and 20 percent this year," Chen said.
Compal shipped 5.5 million notebook PCs last year to clients such as the US computer giant Hewlett-Packard Co and Japan's Toshiba Corp.
This year's target of shipping 8 million units remains, Chen said.
Global demand for laptop computers this year will soar by a quarter from last year to 50 million units, Chen said, citing international market researcher IDC Inc.
But the optimism is at odds with a nearly 40 percent cut in the company's capital expenditures for this year.
Compal plans to spend NT$5 billion, down from NT$8 billion last year, on equipment for its flat-panel affiliate Toppoly Optoelectronics Corp (
After a weak first quarter, the company expects a steep rebound in the second quarter, also a traditionally quiet season for its products, thanks to unspecified demand from new customers, Chen said. He didn't elaborate, but said such orders would help push up its shipments by between 15 percent and 20 percent from the previous quarter.
Joe Wang (
"Compal will continue to enjoy respectable growth this year as a big jump in shipments will be able to offset the gross margin decline, and there will be a greater contribution from its non-core businesses," he said.
Compal's fourth-quarter gross margin dropped to 7.5 percent from 9.8 percent in the previous quarter, according to the company.
Wang forecast that Compal will earn about NT$4 a share this year. Compal earned NT$3.8 a share last year.
To boost profits amid shrinking gross margins in the computer sector, Compal is pinning its hopes on its non-core businesses, including handsets, flat-screen televisions and flat-panel manufacturing.
Compal and its communications unit, Compal Communications Inc (華寶通訊), are expected to churn out some 10 million handsets this year, double last year's figure.
Compal said it would make about 200,000 liquid-crystal-display TVs for its Japanese customers this year.
Compal said earnings hit a record high in the last quarter of NT$3.6 billion, or NT$1.22 a share, on revenues of NT$59.57 billion.
The result, however, is slightly lower than the NT$4 billion earnings forecast by Richard Lee (
Compal shares rose nearly 1 percent to NT$43.1 each on the TAIEX yesterday.
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