Asustek Q3 net profit hits 14-quarter high

Asustek Computer Inc. (華碩), one of Taiwan’s leading personal computer vendors, said Friday that its net profit for the third quarter hit a 14-quarter high because of strong returns on its non-core business investments.

At an investor conference, Asustek reported a net profit of NT$5.98 billion (US$188 million) for the July-September period, up 45 percent from a quarter earlier and also up 42 percent from a year earlier.

The third quarter figure was the highest since the first quarter of 2013, when Asustek’s net profit was NT$6.06 billion.

It also had earnings per share of NT$8 for the third quarter, also the highest since the first quarter of 2013, when EPS was NT$8.04, Asustek said.

Profits generated from non-core businesses totaled NT$3.33 billion in the third quarter, strengthening the company’s bottom line.

Out of the non-core business profit, NT$2.82 billion came from cash dividends it received from stock investments, Asustek said.

That included cash dividends of about NT$2 billion from contract electronics maker Pegatron Corp. (和碩) and about NT$500 million from industrial computer maker Advantech Co. (研華).

In addition, Asustek recorded a foreign exchange gain of about NT$55 million despite a stronger Taiwan dollar relative to the U.S. dollar during the quarter.

Asustek’s brand sales totaled NT$107.51 billion in the third quarter, up 14 percent from a quarter earlier but down 3 percent from a year earlier. Its operating profit totaled NT$4.28 billion, up 14 percent quarter-on-quarter but down 15 percent year-on-year.

Nick Wu (吳長榮), chief financial officer of Asustek, told investors that brand revenue for the fourth quarter is expected to range between NT$100 billion and NT$110 billion, which would represent between a 7 percent decline and 2 percent rise from a quarter earlier.

Wu said PC sales in the fourth quarter are expected to stay little changed from a quarter earlier but could grow 5 percent in the best case scenario, while sales generated from mobile devices could rise 10-20 percent from a quarter earlier.

He said Asustek will continue to control its operating risks on hopes that it will continue to show stable profit growth in the fourth quarter.

Source: Focus Taiwan News Channel

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