Acer's profits drop 63 percent from last year's figure

Acer Inc, Taiwan's third-largest computer company by market value, had a second straight quarter of profit decline, blaming a delay in the sale of some investment holdings and a loss at an affiliate.

Profit for the third quarter fell 63 percent to NT$1.43 billion (US$43 million) from NT$3.9 billion a year ago, the company said in a statement.

Sales rose more than two-fifths to NT$31.4 billion, based on previously released figures. Wistron Corp (緯創資通), Taiwan's fourth-largest maker of notebook computers and 40 percent-owned by Acer, had a third-quarter loss of NT$1.01 billion, compared with profit of NT$748 million a year ago.

The profit drop "reflects Wistron's third-quarter losses and the delay of some investment disposals," Acer's public relations specialist Stella Chou (周之新) said.

"Acer will continue to dispose of non-core investments in the fourth quarter and still expects to reach the full-year's profit target," Chou said.

Acer has been selling shares in companies, such as Taiwan Semiconductor Manufacturing Co (台積電), to bolster profit. In the third quarter of last year, the company had a NT$3.7 billion gain from the sale of Ambit Microsystems Corp (國電) and BenQ Corp (明基電通) shares. Acer said last month it plans to sell shares in Hon Hai Precision Industry Co (鴻海精密) and BenQ, worth NT$5.8 billion.

Operating income, or the amount Acer earned from its computer business, doubled in the third quarter to NT$934 million from NT$451 million a year ago, Acer said.

The company will hold an investors' meeting on Nov. 3 to discuss the earnings and outlook, Chou said.

Nine-month profit fell 36 percent to NT$3.8 billion, or NT$1.84 a share, from NT$5.9 billion, or NT$2.87 a share, a year ago.

Profit reached 52 percent of Acer's forecasted net income for the year. Sales for the first nine months rose 68 percent to NT$84.8 billion from a year ago, according to previously announced figures.