Wed, Jul 30, 2014 - Page 13 News List

Delta Electronics posts record net profit

PLAYSTATION BOOST:Chairman Yancey Hai said second-quarter growth was due to increased shipments of components for Sony’s game console as well as PC products

By Helen Ku  /  Staff reporter

Delta Electronics Inc (台達電) yesterday reported a record-high net profit of NT$5.26 billion (US$175.64 million), or NT$2.16 per share, for last quarter thanks to increased shipments of power electronics for video game consoles, notebook computers and data centers.

The top supplier of power-supply units in the nation said cost controls and improvements to operational efficiency also helped it deliver strong financial results.

With better product mix, gross margin also reached an all-time high of 27.4 percent during the April-to-June period, compared with 26.6 percent in the first quarter of the year and 25.2 percent a year ago, according to Delta’s financial report.

“We are quite optimistic about this quarter, and if the company’s third-quarter sales continue growing both quarterly and annually, gross margin might be sustained at a higher level,” Delta chairman Yancey Hai (海英俊) told an investors’ conference yesterday.

Delta’s sales expanded 11 percent quarter-on-quarter in the second quarter and 11 percent year-on-year to NT$47.6 billion, pushing total sales during the first half of the year up by 10 percent to NT$90.7 billion from a year ago.

Hai attributed the growth to increased shipments of power electronics for Sony Corp’s PlayStation 4 video game console and for PC products, adding: “Sales were not as bad as predicted.”

For the second half of the year, Hai forecast the major sales drivers would be power electronics for data centers, telecom power systems, industrial automation products and hot-pressed power chokes for Apple Inc’s next-generation iPhones.

While Delta will continue to supply power electronics to Sony, “the peak season [of Sony’s PlayStation 4] is gone,” and Delta is unlikely to receive more rush orders from Sony this quarter or next, Hai said.

“Overall, Delta’s business remains promising in the long term, supported mainly by the rise of robots in countries like China, where the issue of wage hikes is becoming ever more serious,” Hai said.

“We will start mass producing hot-pressed power chokes for Apple as soon as from this quarter, and the high-margin products will drive Delta’s sales during the second half to exceed those of NT$90.7 billion during the first half,” he said.

Hai said Delta started making electric vehicle-related components for automakers such as Tesla Motors Inc, General Motors Co and Ford Motor Co last year.

While Delta aims to increase installation of its own charging stations in as many cities as possible, it is also developing energy storage products for electric vehicles and factories, Delta Electronics CEO Cheng Ping (鄭平) said.

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