Asustek share prices fall after saying it may cut shipments to Europe
May 15, 2010, 1:54 pm TWN
TAIPEI, Taiwan -- Asustek Computer Inc., maker of the Eee PC low-cost netbook, fell to its lowest point in nine months in Taipei trading after the company said it may cut shipments to Europe to combat the declining euro. Asustek dropped 5.3 percent to NT$50.40 as of 12:05 p.m. in Taipei, the lowest since Aug. 6, compared with a 0.2 percent decline in the benchmark Taiex index.
The company may choose to decline orders from Europe next quarter as the falling euro lowers the Taiwan dollar value of its sales to the region, Jerry Shen, chief executive officer of Taipei-based Asustek said in an interview Thursday.
"We'll make the decision that if we'd lose money on that kind of order, we may not take it," Shen said. Asustek hedges its euro exposure one quarter in advance and will make a decision on third-quarter orders and hedging by the end of this month, he said. Europe accounted for 41 percent of Asustek's revenue in the first quarter.