Hon Hai Precision Industry Co (鴻海精密), the nation's biggest maker of computer parts, posted a greater-than-expected 29 percent increase in first-quarter profit as higher sales countered falling prices.
Net income rose to NT$3.9 billion (US$112 million), beating the average NT$3.1 billion estimate of four analysts surveyed by Bloomberg News. Sales rose 37 percent to NT$43 billion, the company said in a statement.
Hon Hai also announced a dividend of NT$3 a share for last year, to be paid half in cash and half in stock through the issue of 296 million new shares. The issue of shares, some of which will also be paid as staff bonuses, will save NT$2.96 billion in cash that the company said it will use to expand production.
The dividend represents two-fifths of annual earnings, which rose 27 percent last year to NT$13.1 billion, Hon Hai also said.
Hon Hai, the nation's largest publicly traded manufacturer by revenue, countered falling prices in the first quarter by boosting sales of electronics parts to customers such as Compaq Computer Corp, Nokia Oyj and Sony Corp. Still, its operating profit margin narrowed to 5.6 percent from 7.8 percent.
Hon Hai's earnings were also helped by the fact it has based more than half its production in China to cut costs.
Meanwhile, Siliconware Precision Industries Co (矽品精密), the world's third-largest chip assembler, reported first-quarter profit fell 60 percent as falling demand prompted the firm to cut prices.
The company posted a profit of NT$155.7 million ($4.5 million) compared with NT$384.6 million a year ago. Sales rose 15 percent to NT$5.3 billion.
Siliconware forecasts it will return to a full-year profit of NT$1.1 billion in 2002 as demand revives, boosting capacity and prices.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
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