LOS ALTOS, CA - China's appetite for energy coupled with decisions by leading oil producers not to raise output will inflate energy costs and slow global GDP growth, according to the latest economic report by Henderson Ventures.
The research firm forecasts GDP growth to slow to 3% in 2006, from 4% in 2004, and then rebound to 3.6% in 2007.
Electronics equipment markets are expected to follow suit, Henderson said.
"This year, consumer outlays will be stoked by demand for mobile telephones, flat-screen TVs, low-end PCs and iPods. Increasing per-vehicle content will help automotive electronics manufacturers to achieve respectable growth," Henderson said.
Businesses will spike IT equipment buys, and military electronics will see "muscular gains," largely in the U.S., Henderson said.
Global electronics equipment production is forecast to grow 7.1% percent this year, down from 10.3% in 2004. 2006 and 2007 growth will be 5.6% and 7.7%, respectively, Henderson forecasts.
VANCOUVER, CANADA - Nam Tai Electronics reported a record $156 million in sales for the first quarter of 2005, an increase of 64% over 2004. The growth exceeded the EMS provider's upper sales guidance of $155 million.
"Nam Tai's
first quarter sales typically are seasonally the lowest due to a long holiday in China with the
shortest working days and after the peak season of Christmas sales," said Nam Tai's CEO Joseph Li.
""The substantial growth in sales was mainly attributable to our new expanded production capacity resulting from construction which has completed ahead of the schedule. Based on continuous sales orders from existing customers and positive feedback from potential customers, we are optimistic and confident that our growth momentum will continue into the second quarter and onward in 2005."
Nam Tai Electronics manufactures electronics components and subassemblies, and finished products, including cellular phones and PDAs.