Tue, Mar 06, 2018 - Page 12 News List

Yageo’s revenue declines, but upbeat on prospects

By Lisa Wang  /  Staff reporter

Yageo Corp (國巨) yesterday posted its first monthly revenue decline for last month as shipments fell because the Lunar New Year holiday meant fewer working days.

The nation’s biggest passive components maker expects revenue to get back on track later this year due to increasing demand for higher priced components used in the automobiles, industrial devices and new flagship smartphones, as well as high-performance computers, it said in a statement.

Supplies of multi-layer ceramic capacitors and chip resistors would remain tight due to strong customer demand, Yageo said.

Short supply has been ongoing since the beginning of last year, it said.

“Yageo is confident that it will enhance its competitive advantage to ensure profitable growth,” it said.

Yageo last month told customers that it plans to raise the prices of thick film chip resistors and array chip resistors by between 20 percent and 30 percent, the second price increase this year.

It had increased prices on some of its chip resistor products by between 15 percent and 20 percent in January.

Revenue fell last month by about 9 percent to NT$3.22 billion (US$109.9 million) compared with NT$3.54 billion in January, the company said.

That represented a surge of 60.6 percent from about NT$2 billion in February last year.

Shipments to customers in the greater China and Asia-Pacific regions, Europe and North America fell month-on-month last month, Yageo said.

Demand for its products used in smartphones continued to increase last month, while demand for products used in the automotive, industrial, computer and electronics industries fell, it said.

Separately, Chunghwa Precision Test Technology Co (CHPT, 中華精測), the nation’s largest provider of probe card testing services, posted a 14.27 percent decline in revenue for last month.

Revenue fell to NT$213.29 million, compared with NT$248.79 million in January, according to a company filing with the Taiwan Stock Exchange on Sunday.

The figure represented a year-on-year contraction of 18.6 percent from NT$262.01 million.

The weaker-than-expected figure saw the company’s shares fall 6.16 percent yesterday to close at NT$990 in Taipei trading.

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