Delta Electronics Sees Net Profits Hit New High in 2010

Taipei, March 16, 2011 (CENS)--The Taiwan-based Delta Electronics Inc., a globally leading supplier of power supplies, reported full-year net profits of NT$15.754 billion, or NT$6.69 per share, for 2010, sharply up 35% from 2009 to hit a record high, according to the firm's financial statements.

The firm also scored combined revenue of NT$171.302 billion in 2010, representing a 38.01% increase over a year earlier to reach an all-time high, with gross profit rate edging down to 21.4% from 21.6%, and pretax profits growing 32% to NT$20.146 billion. With the shining profit performance, the firm has approved cash dividends of NT$5.2 for its shareholders this year.

As to outlooks for this year, the firm's CEO Yancey Hai admitted that his company's gross profit rate may decline by one to two percentage points, mainly because of the appreciation of the New Taiwan dollar against the U.S. dollar, skyrocketing prices of raw materials and rising labor costs.

However, Hai stressed, Delta Electronics still aims to score a double-digit growth in its sales revenue for 2011, with the growth mainly led by renewable energy and OBM (original brand manufacturing) business.

The firm has projected its sales of electromechanical products to keep growing 30%, and those of photovoltaic inverters to surge at a double-digit growth this year. Although overall shipments of power supplies for IT (information technology)-based devices will be unchanged or shrink, the firm opines that shipments of tablet PCs and consumer electronics as TV game consoles and set-top boxes will help sustain the business.

To boost its sales in China, which contributed over 50% to the total last year, Delta Electronics has planned to expand its retailer number to over 500 by the end of this year, in a bid to strengthen its OBM business there.

Overall, Hai mentioned his firm will focus more on non-IT device business for a sustainable growth this year, while sharpening its ODM (original design manufacturing) capability and stepping up exploring emerging markets to build firmer footholds for OBM business.