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Yageo reported its third-quarter results of 2020

2020/11/10

Yageo Corporation (TAIEX: 2327 TW) today announced its third-quarter results of 2020. Net consolidated sales reported NT$ 21,953 million, up 63.0% q-o-q and up 112.8% y-o-y, respectively. Net consolidated profits after tax attributable to parent company in the third quarter reported NT$ 3,627 million, up 10.1% q-o-q and 80.0% y-o-y, respectively, or NT$ 7.37 earnings per share. Gross margin rate posted 37.4%, down 6.9% percentage point q-o-q but up 6.4% percentage point y-o-y, respectively. The operating profit reached NT$ 5,503 million with 25.1% operating profit margin rate, down 7.0% percentage point q-o-q but up 8.9% percentage point y-o-y, respectively. Non-operating items posted a net loss of NT$ 675 million in the third quarter, including realized and unrealized net loss on foreign exchange NT$ 609 million (the influence to EPS was about -NT$ 1.24), investment income under equity method NT$ 84 million, net interest cost NT$ 115 million, and other net loss of NT$ 35 million.

 

YTD20 consolidated sales reported NT$ 45,447 million, up 45.2 % y-o-y. Net consolidated profit after tax attribute to parent company reported NT$ 9,272 million, up 55.5% y-o-y, or NT$ 20.03 earnings per share. Gross margin rate posted 40.1%, up 3.6% percentage point y-o-y. The operating income reached NT$ 12,393 million with 27.3% of operating profit margin rate, up 7.0% percentage point y-o-y. Non-operating items posted a net loss of NT$ 519 million, including realized and unrealized net loss on foreign exchange NT$ 483 million, investment income under equity method NT$ 216 million, net interest cost NT$ 16 million, and other net loss of NT$ 236 million.

 

Consolidated sales and earnings per share of third-quarter reached at recent 8 quarters and 7 quarters high, respectively, attributed to the synergy of post KEMET merger, gradual improvement in production and capacity utilization, and stable demands from end customers. Furthermore, Yageo’s revenues and product portfolios have been undergone structural changes, starting from the third-quarter of 2020. Foreseeing the multiple demand increase for customized high-end specialty products from future technologies, this eventually will maximize the company's value in high-end automotive, industrial, medical, aerospace, and 5G/IoT segments, and help deliver stable revenue and profitability growth in the future.

 

Meanwhile, the global COVID-19 pandemic has not eased and the uncertainty of international trade dispute remains high, Yageo has gradually increased and maintained higher capacity utilization rate for both MLCCs and chip resistors, while running full-capacity for Tantalum capacitors, to meet the steadily increasing market demands. But consequently it could not significantly increase the finished goods inventory level and the inventory turnover days is still expected to stay low.

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