Taiwanese firms see dismal results as Thai floods take effect

A number of Taiwanese manufacturers have posted negative results, variously hit by Thai floods and a precarious global economic situation.

PC maker Asustek announced that it now expects its revenues to take a knock due to the extensive flooding in Thailand, where much of the world’s hard drives are produced.  This has led to predictions that revenues will drop by five to 10 percent in the fourth quarter.

Previous expectations were that revenues would stay flat, but now Asustek will see a similar decline to that of rival Acer, which made a similar announcement last week.

Both firms will now raise average selling prices, as well as downgrading the hardware of some notebooks, as the price of hard disks begins to soar.

There is now an expectation that the hard drive shortage will directly impact on notebook prices by three to six percent, according to the Taipei Times.

Contract notebook manufacturers Quanta and Compal also announced that component shortages in Thailand would hurt shipments of devices in the fourth quarter.

The firms have adjusted their forecasts, and now believe that shipments will stay flat for the quarter or decline.

Quanta also suggested that production being slowed by Catcher Technology in China has impacted shipments.  This is due to Chinese authorities in Suzhou ordering production to be partly shut down due to environmental concerns last month.

Quanta still reckons it will see five to 10 percent more notebooks sold this year in total, up from 52.1 million last year.

Compal announced that it expects to be hit harder, with shipments expected to decline five to 10 percent in the upcoming quarter.

This means that Compal will ship between 40 to 42 million notebooks this year, down from its earlier forecast of 42 million.

Figures for next year are expected to see Ultrabooks to take up to 20 percent of shipments, though this may still fall far short of Intel’s high expectation for the devices in 2012.

Netbooks however are expected to account for less than 10 percent.

Contract electronics maker Hon Hai also reported disappointing results, though this is said to be attributable to the economic situation. 

The firm reported an 8.41 percent drop in its net income for the third quarter compared to a year earlier as industry slowdown hurt it sales of consumer electronics and PCs.

However on a quarterly basis Hon Hai saw its net income jump by 47.71 percent, said to be due to integration of its mechanical, optical and electrical businesses.

Flat panel maker Chimei Innolux also recorded third quarter results, notching up its fifth consecutive quarterly loss.  Losses expanded to $573 million in the third quarter, up from losses of $445 million in the preceding quarter.  This also compares unfavourably with losses last year of $130 million.