Delta Electronics Inc (台達電) yesterday reported a record profit last quarter, thanks to catalysts such as contributions from a newly acquired power system company and improved sales at its power management unit.
However, the nation’s top power supply maker did not offer sales guidance for this quarter, citing a law banning financial forecasts before the completion of fundraising at the end of the year.
Net income climbed to NT$5.89 billion (US$180.2 million) in the third quarter, up 1 percent year-on-year and 55 percent quarter-on-quarter, mainly due to sales contribution from newly bought Eltek ASA and that from its power management segment.
Earnings per share were NT$2.42, compared with NT$2.4 per share in the same period last year and NT$1.55 per share in the prior quarter.
“Eltek benefited Delta’s sales and gross margin performance last quarter,” Delta investor services division manager Rodney Liu (劉致遠) told an investors’ conference in Taipei.
Gross margin was 28.2 percent last quarter, up 0.9 percentage points from last year’s 27.3 percent and 1.2 percentage points from the previous quarter’s 27 percent. It was the highest quarterly gross margin in the firm’s history.
Delta in December last year announced it was to acquire Eltek in a deal totaling US$530 million.
“So far, the acquisition seems to be a good deal,” Delta chairman Yancey Hai (海英俊) said.
As the two companies have different client bases, Delta now has a larger client base and can expand its market, Hai said, adding that Eltek’s sales and profit have remained stable over the past few months.
KGI Securities Investment Advisory (凱基投顧) on Oct. 6 forecast Delta’s sales this quarter might grow 7 percent to NT$57.5 billion from last quarter’s NT$55.9 billion, driven by strong demand for passive components and thermal electric cooing fan products.
The company is also making efforts to improve its financial health after announcing last month its first rights issue in the company’s 45-year history. Delta plans to issue 170.66 million new shares, hoping to raise more than NT$25 billion.
“The move could dilute earnings per share by 7 percent at most, but we can handle it,” Hai said.
Delta’s spokesman Jesse Chou (周志宏) said Delta’s long-term and short-term debt totaled more than NT$40 billion. The firm plans to spend most of the newly raised funds to reduce debt, he said.
The company’s debt ratio is 56 percent and Delta hopes to lower the ratio to about 50 percent.
Taiwan’s long-term economic competitiveness will hinge not only on national champions like Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) but also on the widespread adoption of artificial intelligence (AI) and other emerging technologies, a US-based scholar has said. At a lecture in Taipei on Tuesday, Jeffrey Ding, assistant professor of political science at the George Washington University and author of "Technology and the Rise of Great Powers," argued that historical experience shows that general-purpose technologies (GPTs) — such as electricity, computers and now AI — shape long-term economic advantages through their diffusion across the broader economy. "What really matters is not who pioneers
In a high-security Shenzhen laboratory, Chinese scientists have built what Washington has spent years trying to prevent: a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence (AI), smartphones and weapons central to Western military dominance, Reuters has learned. Completed early this year and undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML who reverse-engineered the company’s extreme ultraviolet lithography (EUV) machines, according to two people with knowledge of the project. EUV machines sit at the heart of a technological Cold
TAIWAN VALUE CHAIN: Foxtron is to fully own Luxgen following the transaction and it plans to launch a new electric model, the Foxtron Bria, in Taiwan next year Yulon Motor Co (裕隆汽車) yesterday said that its board of directors approved the disposal of its electric vehicle (EV) unit, Luxgen Motor Co (納智捷汽車), to Foxtron Vehicle Technologies Co (鴻華先進) for NT$787.6 million (US$24.98 million). Foxtron, a half-half joint venture between Yulon affiliate Hua-Chuang Automobile Information Technical Center Co (華創車電) and Hon Hai Precision Industry Co (鴻海精密), expects to wrap up the deal in the first quarter of next year. Foxtron would fully own Luxgen following the transaction, including five car distributing companies, outlets and all employees. The deal is subject to the approval of the Fair Trade Commission, Foxtron said. “Foxtron will be
INFLATION CONSIDERATION: The BOJ governor said that it would ‘keep making appropriate decisions’ and would adjust depending on the economy and prices The Bank of Japan (BOJ) yesterday raised its benchmark interest rate to the highest in 30 years and said more increases are in the pipeline if conditions allow, in a sign of growing conviction that it can attain the stable inflation target it has pursued for more than a decade. Bank of Japan Governor Kazuo Ueda’s policy board increased the rate by 0.2 percentage points to 0.75 percent, in a unanimous decision, the bank said in a statement. The central bank cited the rising likelihood of its economic outlook being realized. The rate change was expected by all 50 economists surveyed by Bloomberg. The
RSS