Compal Q2 profit records quarterly rise, yearly fall

By Helen Ku  /  Staff reporter

Wed, Aug 14, 2013 - Page 14

Compal Electronics Inc (仁寶電腦), the world’s second-largest contract laptop maker by shipments, on Monday reported a second-quarter net profit of NT$1.39 billion (US$46.43 million), up 3 percent quarter-on-quarter, but down 11.46 percent annually.

During the first six months of the year, net profits fell 19.88 percent to NT$2.75 billion from NT$3.44 billion in the same period last year, Compal said in a filing to the Taiwan Stock Exchange.

Earnings per share (EPS) last quarter were NT$0.32, up from NT$0.31 in the previous quarter, but down from NT$0.36 a year ago. During the January-to-June period, EPS were NT$0.63, the filing said.

While Compal did not elaborate on its quarterly net profit figures, analysts said the company’s earnings met their forecasts.

Fubon Securities Co (富邦證券) analyst Arthur Liao (廖顯毅) said yesterday that Compal’s EPS last quarter were 10 percent higher than his estimate of NT$0.29.

Since Compal won most of Dell Inc’s corporate laptop orders and Lenovo Group Ltd (聯想) plans to allocate at least 35 percent of its laptop orders to the company, Liao forecast Compal’s annual laptop shipments would remain flat at between 39 million and 41 million units next year from this year.

Stable orders and increasing replacement demand for PCs running Microsoft Corp’s Windows 8 are expected to support Compal’s shipments through next year, he said.

Yuanta Investment Consulting Co (元大投顧) analyst Calvin Wei (魏建發) said Compal’s second-quarter EPS were in line with his estimate, but forecast the company would post a 3 percent quarter-on-quarter drop in sales amid structural changes in the PC market.

Compal shares fell 1.1 percent to NT$17.9 yesterday, underperforming the broader market.