Delta Electronics Inc (台達電), the world’s top manufacturer of switching power supplies, yesterday said it expects sales to rise by double digits this year as a result of industrial automation and tablet PC adapter sales.
However, gross margins will inch down by between 1 percent and 2 percent, after such factors as currency fluctuation and the rising cost of new materials are taken into account, vice chairman and chief executive Yancey Hai (海英俊) told an investors’ conference.
The company is taking -counter--measures by negotiating for higher prices with customers and adjusting its product mix, he said.
Delta, which supplies power adapters to Hewlett-Packard Co and for Apple Inc’s notebooks, reported a 38 percent rise in revenue last year to NT$171.3 billion (US$5.8 billion).
However, the gross margin was 21.4 percent last year, down slightly from 21.6 percent a year earlier, according to company statistics.
Net income was a record NT$15.75 billion, translating into earnings per share (EPS) of NT$6.69. That was an increase of 35 percent on 2009, when reported earnings were NT$11.66 billion, with an EPS of NT$4.95.
The power supplies maker established its industrial automation division in 1995, but the business only took off in recent years thanks to booming demand from emerging markets such as China and India. In those countries, the pursuit of industrialization requires automation solutions for factories, for example for speeding up or standardizing the production of food and packaging.
Delta is selling components and modules used for industrial automation — such as inverters, converters, drivers and motors — and aims to become a one-stop provider offering automation solutions that help clients program and manage all their operations.
Industrial automation business accounted for 8 percent of Delta’s total sales last year, up from 6 percent in 2009, company statistics show.
The company is aggressively expanding industrial automation channels in China, which currently account for 50 percent of its industrial automation business, Hai said.
The company also announced yesterday that it plans to spend US$161.8 million to boost its stake in Delta GreenTech (China) Co (中達電通) from 10 percent to 48.5 percent.
The move will allow the firm to obtain 400-plus existing Delta GreenTech channels, Hai said, adding that the number would expand to more than 500 by the end of the year.
Delta is also set to ride high on the growth of the tablet PC market this year as more players enter the market.
“We have a good position in tablets. There are not many manufacturers that could ramp up production by a million adapters at short notice,” Hai said.
The company yesterday also proposed the payment of a NT$5.2 per share cash dividend, which amounts to 4.11 percent of yield rate based on its closing stock price of NT$126.5.
Gudeng Precision Industrial Co (家登精密), the sole extreme ultraviolet pod supplier to Taiwan Semiconductor Manufacturing Co (台積電), yesterday said it has trimmed its revenue growth target for this year as US tariffs are likely to depress customer demand and weigh on the whole supply chain. Gudeng’s remarks came after the US on Monday notified 14 countries, including Japan and South Korea, of new tariff rates that are set to take effect on Aug. 1. Taiwan is still negotiating for a rate lower than the 32 percent “reciprocal” tariffs announced by the US in April, which it later postponed to today. The
ELECTRONICS: Strong growth in cloud services and smart consumer electronics offset computing declines, helping the company to maintain sales momentum, Hon Hai said Hon Hai Precision Industry Co (鴻海精密) on Saturday announced that its sales for last month rose 10 percent year-on-year, driven by strong growth in cloud and networking products amid the ongoing artificial intelligence (AI) boom. The company, also known internationally as Foxconn Technology Group (富士康科技集團), reported consolidated sales of NT$540.24 billion (US$18.67 billion) for the month, the highest ever for the period, and a 10.09 percent increase from a year earlier, although it was down 12.26 percent from the previous month. Hon Hai, which is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators, said its cloud
Video streaming giant Netflix is launching a talent cultivation program in Taiwan aimed at producing high-quality Mandarin content, the company announced in a press release on Thursday. Netflix Chinese language content head Maya Huang (黃怡玫) said that Netflix has long invested in the Taiwanese market, citing the Netflix Fund for Creative Equity launched last year as an example. The fund would continue to dedicate resources to discovering content with the potential to be developed into Chinese-language projects, she added. The financing for the new talent projects seeks to create an ecosystem for content creators and professional development programs, she said. The talent projects
APPRECIATION: The central bank stepped in to stabilize the NT dollar after a surge in foreign institutional investment, triggered by optimism about tariffs and US Fed policy Taiwan’s foreign exchange reserves hit a record high at the end of last month, as the central bank intervened in the currency market to curb the New Taiwan dollar’s appreciation against the US dollar. Foreign exchange reserves increased by US$5.48 billion from May, reaching an all-time high of US$598.43 billion, the central bank said on Friday. While the central bank did not disclose the scale of its intervention, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) said that the currency market remained relatively stable until the middle of last month. However, a shift occurred following the US Federal Reserve’s signal of a
RSS