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Delta Electronics earns NT$43 bil. in Q1

TAIPEI, Taiwan -- Power supply maker Delta Electronics Inc. (台達電) yesterday announced its first quarter performance review, recording revenues of NT$43.036 billion, improving 10.83 percent compared with last year in the traditional low season.

Foreign institutional investors estimate the company's first quarter earnings-per-share performance at NT$1.87, a new high for a single quarter. Sales in the period declined by 11.52 percent relative to results recorded during the traditional high season in the fourth quarter of last year, with profit margins holding above last year's average of 25.43, and fourth quarter average of 26.04 percent. First quarter operating earnings and after-tax net income reached NT$11.437 billion and NT$4.569 billion, respectively.

The company attributed its first quarter results to improved product diversification, and the less-than-expected declines in consumer demand for PC products. For the second quarter, the company is expecting sales to be propelled by growth in industrial automation, networking equipment and gaming consoles.

For the second quarter, company Chairman Hai Ying-chun (海英俊) stated that growth in the market for the information technology sector is expected to persist following an expectation-beating first quarter in sales momentum, which saw surprisingly strong improvements in certain product niches. The company is also expecting sales in the industrial automation sector to see double-digit growth beginning in the third quarter, as Delta Electronics forges ahead to expand its current 1-percent hold on global market share. In the same period, the advent of the fourth generation (4G) mobile broadband network is anticipated to spur on growth in sales of telecommunication and networking equipment power supplies. The company is expecting revenues derived from cooling fans and power supplies for medium to large-sized display monitors to see improved profit margins and single-digit growth.

Most notably, the company remarked that it is prepared to capture the emerging market for electric vehicle charging stations and related equipment in the China market, as electric cars made by the U.S.-based TESLA are launched in the vast mainland market. Hai noted that the Chinese government, in particular Premier Lee Keqiang (李克強) has pledged his resolve to combat China's air pollution. Hai also stated that energy storage remains the bottleneck to new breakthroughs in green technology, including solar and wind, adding that this frontier is an important focus in the company's research endeavors.

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