Cheng Uei's Consolidated Gross Profit Margin in Q3 Recovers

Taipei, Nov.16, 2012 (CENS)--The Taiwan-based connector supplier Cheng Uei Precision Industry Co. saw consolidated gross profit margin in the third quarter rebound to 11.51%, a new high in 2012. Driven by Apple products, the firm is expected to see profits and gross profit margin in the fourth quarter grow.

Cheng Uei's consolidated revenues in the third quarter hit a historical high at NT$27.124 billion (US$904.13 million), up 29.35% quarter on quarter (QoQ), with net profits soaring from NT$49 million (US$1.63 million) in the first quarter to NT$743 million (US$24.77 million) in the third quarter, but down from NT$862 million (US$28.73 million) a year ago, mainly due to currency-exchange revenues and profits gained from disposal of non-core investments, with NT$1.13 (US$0.038) in EPS (earnings per share).

A manager of Cheng Uei stated that the firm's remarkable growth in gross profit margin was mainly due to expanding manufacturing scale and relatively high gross profit margin of new products.

As for the fourth quarter and due to soaring sales of Apple products, Cheng Uei is expected to witness growth in revenues, profits, and gross profit margin.

Cheng Uei's revenues in October exceeded NT$10 billion (US$333.33 million) for the first time to NT$10.892 billion (US$363.07 million), higher than expected and hitting a new high for four consecutive months. With launches of Apple's new products, along with growing shipments of Apple products, Cheng Uei has adjusted quarterly revenue growth target from 5% to 10%.