Wed, Aug 15, 2012 - Page 14 News List

Amtran income surges on North American demand

By Lisa Wang  /  Staff reporter

Amtran Technology Co Ltd (瑞軒), which makes slim-screen TVs for Vizio Inc, yesterday said net income more than doubled to NT$910 million (US$30.37 million) in the first half of this year from a year ago, thanks to improving demand in the North American market and an increase in asset gains.

In the same period of last year, Amtran’s net income was NT$422 million, according to the company’s financial statement filed to the Taiwan Stock Exchange yesterday.

Amtran gained about NT$350 million, including NT$200 million on the foreign exchange market and NT$100 million in profits from its venture with Suzhou Raken Technology Ltd (蘇州樂軒), an LCD TV module venture with LG Display Co.

That represented an increase from NT$152 million in the first half of last year, the company’s data showed.

“We have better cost management,” chief financial officer Scotti Chiu (邱裕平) said via telephone. “Besides, fundamentals also improved ... Demand in North America is better than in Europe, because of the macroeconomic situation.”

LCD TV shipments, mostly to North America, grew 33 percent to 3 million units in the first half of the year, compared with 2.25 million units in the previous year, the company said.

Operating costs fell about 16 percent to NT$1.7 billion in the first six months, from NT$2.02 billion in the previous year, Amtran said.

Gross margin shrank to 10 percent in the first six months, from 13.41 percent in the previous year.

Revenues expanded 13 percent year-on-year to NT$29.2 billion in the first two quarters, from NT$25.75 billion last year.

Amtran said it is looking to develop more niche models, such as big-screen TVs and Internet TVs, to boost its gross margin. About 30 percent of its TV shipments were Internet TVs, according to the company.

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