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Yageo Reported its Third-quarter Results of 2019

2019/11/07

Yageo Corporation (TAIEX: 2327 TW) today announced its third-quarter results of 2019. Net consolidated sales reported NT$ 10,317 million, up 7.7% q-o-q but down 66.4% y-o-y respectively. Net consolidated profits after tax attributable to parent company in the third quarter reported NT$ 2,044 million or NT$ 4.81 earnings per share. Gross margin rate posted 31.0%, down 1.6% percentage point q-o-q and 38.3% percentage point y-o-y respectively. The operating income reached NT$ 1,667 million with 16.2% of operating profit margin, down 1.4% percentage point q-o-q and 39.1% percentage point y-o-y respectively. Non-operating items posted a net gain of NT$ 918 million in the third quarter, including realized and unrealized net gain on foreign exchange NT$ 644 million, investment income under equity method NT$ 51 million, net interest income NT$ 144 million, and other net gain of NT$ 79 million.

 

YTD19 consolidated sales reported NT$ 31,291 million, down 48.7% y-o-y. Net consolidated profit after tax attribute to parent company reported NT$ 6,051 million or NT$ 14.26 earnings per share. Gross margin rate posted 36.5%, down 27.9% percentage point y-o-y. The operating income reached NT$ 6,345 million with 20.3% of operating profit margin, down 32.8% percentage point y-o-y. Non-operating items posted a net gain of NT$ 1,671 million, including realized and unrealized net gain on foreign exchange NT$ 866 million, investment income under equity method NT$ 130 million, net interest income NT$ 533 million, and other net gain of NT$ 142 million.

 

Increased revenue and sustainable profit in the third quarter as compared to last quarter mainly attributed to increased demand in Greater China and other Asia region. Foresee the fourth quarter, considering both our internal and customers’ inventory level is normalized and end-demand gradually picks up, the Company’s finished goods safety stock level will keep declining as the Company could not raise utilization rate to a large extent due to labor shortage in production facilities located in Mainland China. Moving forward, Yageo will stay vigilant for the challenging environment as continuous concerns on the trade frictions and still remain conservative about its sales and operation performance.

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