Sat, Aug 10, 2019 - Page 12 News List

Catcher net profit shoots up in Q2 on non-operating income

Staff writer with CNA

Catcher Technology Co (可成科技), a supplier of metal casings to Apple Inc, saw its net profit in the second quarter rise more than 60 percent from the previous quarter because of strong income from activities not related to its main business operations.

In a statement issued yesterday, Catcher said its net profit was NT$2.73 billion (US$87.05 million), up 60.8 percent from a quarter earlier, but its operating profit fell almost 40 percent to NT$1.47 billion due to rising costs.

Non-operating income topped NT$4.61 billion in the second quarter, more than offsetting the decline in operating profit to give the company strong quarter-on-quarter profit gains, Catcher said.

The company did not elaborate on the sources of its high non-operating income.

Catcher's earnings per share (EPS) were NT$3.54 for the second quarter, up from NT$2.20 in the first quarter.

Although the company's consolidated sales rose 1.7 percent from a quarter earlier to NT$16.07 billion, its higher costs dragged down its gross margin by 2.29 percentage points to 23.06 percent, it said.

In the first six months of the year, Catcher posted a net profit of NT$4.42 billion, down 69.4 percent from a year earlier, with EPS of NT$5.74, down from NT$18.81a year earlier, while sales fell 22.55 percent to NT$31.88 billion and gross margin slumped 17.8 percentage points to 24.2 percent.

Analysts said Catcher is expected to see its sales pick up in the second half of the year as inventories are drawn down and global brands launch new gadgets.

The company's sales should benefit from the next generation of iPhones that could be unveiled next month, analysts said.

Catcher also reported consolidated sales of NT$8.68 billion for last month, up 38 percent from a month earlier and up 15.77 percent from a year earlier. It was the company's highest monthly sales since November last year, when they totaled NT$9.62 billion.

However, analysts cautioned that despite signs of a better second half for the company, it could still be hurt by lower global demand caused by trade friction between the US and China.

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