Yageo Corp’s (國巨) founding chairman Pierre Chen (陳泰銘) is to resume his previous position of chief executive officer after the company saw net profit plunge 87 percent year-on-year last quarter, dragged by slower inventory digestion and sluggish demand.
Yageo, the world’s No. 3 multilayer ceramic capacitor (MLCC) supplier, said that its board of directors approved the personnel adjustment on Friday as the company continued to grapple with an industry slump and economic uncertainty stemming from the US-China trade dispute.
Five years ago, Chen relinquished his CEO position to Dora Chang (張綺雯), who was Yageo’s chief financial officer at the time.
The company expects to “make a seamless transition, as Chen has been well involved in the development of the passive components industry and the company’s operation strategies,” Yageo said in a statement.
“He will continue to lead Yageo’s expansion into high-end markets for automotive electronics and industrial segments, and enlarge the value of the industry, shareholders, customers and employees,” the company said.
The personnel adjustments are to take effect on Friday next week. Chang is also to be chairperson and CEO of Pulse Electronics Corp, a passive-components maker Yageo acquired in November last year for US$740 million.
Looking ahead, Yageo said it “remains conservative about its business outlook during the second half, with US-China trade disputes tipped to heighten,” Yageo said in the statement. “The company will deal cautiously with such a situation.”
The trade spat might dampen a nascent recovery after three quarters of inventory correction, the company said. Customer demand in Asia, the US and Europe is expected to pick up gradually amid decreasing excess inventory levels in its supply chain.
Net profit sank to NT$1.42 billion (US$45.26 million) in the quarter ended June 30, compared with NT$10.8 billion in the same period last year, the weakest quarterly net profit in eight quarters, Yageo said on Friday.
On a quarterly basis, net profit fell 45 percent from NT$2.59 billion in the first quarter, it said.
Earnings per share fell to NT$3.34 last quarter, compared with NT$6.11 in the previous quarter and NT$25.7 a year earlier.
Worsening earnings have made Yageo a big under-performer over the past seven months.
From Jan. 2 to Friday, its stock price fell 18 percent to NT$257, while the TAIEX rallied 10.14 percent in the same period.
Yageo shares have plunged 67.67 percent since they closed at NT$795 on Aug. 1 last year.
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SinoPac Financial Holdings Co (永豐金控) is weighing whether to add a life insurance business to its portfolio, but would tread cautiously after completing three acquisitions in quick succession, president Stanley Chu (朱士廷) said yesterday. “We are carefully considering whether life insurance should play a role in SinoPac’s business map,” Chu told reporters ahead of an earnings conference. “Our priority is to ensure the success of the deals we have already made, even though we are tracking some possible targets.” Local media have reported that Mercuries Life Insurance Co (三商美邦人壽), which is seeking buyers amid financial strains, has invited three financial
CAUTION: Right now, artificial intelligence runs on faith, not productivity and eventually, the risk of a bubble will emerge,’ TIER economist Gordon Sun said Taiwanese manufacturers turned more optimistic last month, ending a five-month streak of declining sentiment as concerns over US tariffs, currency volatility and China’s overcapacity began to ease, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business confidence index rose 1.17 points from June to 86.8, its first rebound since February. TIER economist Gordon Sun (孫明德) attributed the uptick to fading trade uncertainties, a steadier New Taiwan dollar and reduced competitive pressure from Chinese producers. Taiwan’s semiconductor industry is unlikely to face significant damage from Washington’s ongoing probe into semiconductors, given the US’ reliance on Taiwanese chips to power artificial
RSS