Quanta Computer leads decliners amid sales woes

Stocks fell yesterday, led by Quanta Computer Inc (廣達電腦), after a Taipei-based business daily reported that the world's biggest notebook computer maker may have to lower its sales target for this year.

Chi Mei Optoelectronics Corp (奇美電子), the nation's second-largest maker of flat-panel displays used in computers and televisions, gained after the company said sales last month rose by a third.

The TAIEX shed 3.09, or 0.1 percent, to 5,842.93. About the same number of stocks gained and declined.

Index futures for September added 0.3 percent to 5,843.

"Notebook computer makers are pinched by sluggish demand," said Mike Shiao (蕭光一), a fund manager at Invesco Taiwan Ltd (景順投信). "Falling sales will hurt their profitability."

AU Optronics Corp (友達光電), the world's third-largest maker of flat-panel displays used in computers and televisions, rose 1.2 percent, to NT$43.90. Sales last month rose 30 percent from a year ago to NT$11.2 billion (US$331 million).

Chi Mei rose 3.2 percent to NT$45.20. Sales last month jumped 36 percent from a year ago to NT$7.86 billion.

Quanta Computer fell 0.9 percent to NT$58. Quanta may have to lower its sales target of US$10 billion for this year as sales fell for a third straight month last month, a newspaper reported. Quanta Computer sales fell 1.5 percent last month from a year ago.

The company now aims to ship 11 million notebook computers and 7 million handsets this year, lower than its previous targets of 12 million notebooks and 9 million handsets, the paper said.