Wire harness maker BizLink Holding Inc (貿聯) reported that second-quarter profit increased due to a rise in sales and a favorable product mix, adding that it is cautiously optimistic about the second half of this year.
Net income last quarter grew 113 percent quarter-on-quarter and 2.2 percent year-on-year to NT$503.17 million (US$17.05 million), or earnings per share (EPS) of NT$3.86, BizLink said in a statement on Thursday last week.
Consolidated revenue in the April-to-June period rose 6.4 percent quarterly, but declined 12.09 percent annually to NT$5.27 billion, while gross margin and operating margin rose to 26.3 percent and 11.2 percent respectively, it said.
“Global supply chains were greatly disrupted at the beginning of the second quarter as COVID-19 spread outside of China, causing many countries to completely shut down in an attempt to stem the flow of infections,” it said.
“This especially impacted our global production footprint within the electrical appliance and motor vehicle segments, which lasted until May as countries reopened. Global supply chains returned back to their pre-shutdown levels at the end of June,” it said.
BizLink, a supplier of wiring harnesses for battery management systems to Tesla Inc, also makes components for information technology products, consumer electronics and electrical appliances, as well as telecom equipment and medical devices.
In the first half of the year, net income was NT$740 million, down 10.2 percent from a year earlier, or EPS of NT$5.67, while revenue fell 10.9 percent to NT$10.22 billion.
As global supply chains gradually return to their pre-shutdown levels heading into the third quarter, BizLink said it is positive about orders in the second half from the motor vehicle, semiconductor equipment and data center power cable segments.
Revenue last month reached a nine-month high of NT$2.02 billion.
However, cumulative revenue in the first seven months of this year was NT$12.23 billion, 8.9 percent lower than a year earlier, data showed.
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