Delta Electronics Inc (台達電) yesterday reported an annual growth of 13.19 percent in net income to NT$4.29 billion (US$134.37 million) for last quarter, mainly driven by rising demand for energy management items used in industrial automation.
Last quarter’s earnings expanded 10.56 percent from the previous quarter’s NT$3.88 billion, the company said.
Earnings per share were NT$1.65 last quarter, compared with NT$1.56 in the same period last year and NT$1.5 in the first quarter, company data showed.
Delta chairman Yency Hai (海英俊) attributed the growth to contributions from power system provider Eltek ASA, a Norwegian company that Delta acquired in December 2014 and for which it started booking revenue contributions in May last year.
“Without the acquisition, Delta would not have expanded this much in the first half,” Hai told an investors’ conference in Taipei.
Persistent demand for industrial automation in markets such as China also lent support to Delta’s bottom line last quarter, Hai said.
Gross margin was 28.05 percent last quarter, compared with 26.99 percent in the same period last year and 26.94 percent in the previous quarter, company data showed.
Operating margin reached 9.88 percent in the April-to-June quarter, an improvement from 9.73 percent a year earlier and 8.13 percent in the prior quarter, data showed.
A revenue breakdown showed that its energy management unit, which includes Eltek’s operations, saw sales jump 11 percent annually and 16 percent quarterly last quarter, while its power electronics unit grew 5 percent annually and 9 percent quarterly.
Delta said that sales growth in the power electronics segment, which accounted for 51 percent of the company’s total revenue of NT$52.66 billion last quarter, was supported by improving demand for passive components and robust orders for fans used in plants, automobiles and bathrooms.
Sales for this year are expected to hit their peak this quarter, thanks to healthy demand for power management solutions and electronic components, Hai said.
Industrial automation and fans will be the main growth driver for Delta’s margin performance this quarter, Hai said, declining to offer a growth forecast range.
Analysts have forecast that the company’s sales would grow at least 10 percent from last quarter.
Delta will continue to seek merger and acquisition (M&A) targets to drive growth, Hai said.
“M&As will be one of Delta’s main growth drivers in the future,” he added.
The company will also focus on automotive electronics, Hai said, pointing out that fans, power systems and networking systems are all business opportunities for Delta.
Hai added that Delta had entered the supply chains of a number of major automakers for a wide range of products, with the contribution from automotive electronics likely to grow stronger in the next few years.
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