Acer forecasts operating loss

Acer Inc (宏電) said it expects an operating loss in the second quarter because of a slower-than- expected recovery in demand for personal computers.

Acer will report an operating profit in the second half because it started placing manufacturing orders with other Taiwan suppliers, leading to cost savings, Chief Executive Officer Wang Chen-tang (王振堂) said.

The company expects to report a net income in the second quarter because of gains from selling shares in unit AU Optronics Corp (友達光電), Wang said. While Acer posted a profit of NT$4.16 billion in the first quarter after selling stock in units Benq Corp (明基電通) and Ambit Microsystems Corp (國電), it had an operating loss of an amount it didn't specify.