Nam Tai’s Q3 Sales Decrease 6% YoY
Published: 29 October 2007
by Staff
For the quarter, net income was up 5% to $12.7 million, on net sales of $204.5 million. Gross profit was $26 million, up 16.6%.
On a sequential basis, the company’s total revenue grew 3%; and gross profit margins improved to 12.7% in the third quarter, from 9% in the first quarter and 11.5% in the second quarter, Nam Tai says.
LCD product sales grew 3% during the quarter, and sales in consumer electronics and communication products grew 21%, the latter particularly from increased sales of mobile phone accessories, educational devices and home entertainment products.
Year-to-date, Nam Tai's net sales were $593.9 million, down 7.3% year-over-year. Gross profit was $66 million, up 2.8%. Net income was $59.9 million, up 39%.
The third quarter remained difficult for the company; the competitive environment remains intense. Nam Tai expects resulting pricing pressure from customers to remain a significant challenge for the EMS industry in the coming quarters and years.
In the near term, the company expects any increases in demand for products in its TCA segment to be offset by seasonal decreases in other product segments.
The development of production facilities in Shenzhen Guangming Hi-Tech Industrial Park is in progress.
