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.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
RSS