Delta Electronics to Record Substantial Revenue Growth in Q2

Taipei, May 6, 2011 (CENS)--Delta Electronics Corp., Taiwan's leading provider of power management solutions, anticipated a double-digit sales growth in the second quarter of this year, compared to the first quarter.

Delta reported after-tax earnings of NT$3.114 billion, or NT$1.3 per share, for the first quarter of this year. Thanks to the price hike in its core product of power supply, the company will see minor surge in gross profit margin in the second quarter and the third this year.

Over the past few months, Delta has gained ground in the new business sections, including server power supply, driving systems for electric cars and LED (light emitting diode) bulbs.

Yancy Hai, spokesman of Delta, said the massive earthquake devastating northeastern Japan on March 11 will have little impact on its operations as the company has adopted ICs (integrated circuits) made by European firms to facilitate production of industrial-automation devices.

Hai noted the company's biggest growth engine in the second quarter will come from sales of industrial-automation devices and passive electronic components, with each expected to grow over 40%.

At an institutional investor conference recently held in Taipei, Delta said its consolidated sales reached NT$40.239 billion in the first quarter of this year, up 20.24% year-on-year. During the quarter, the company scored NT$3.114 billion in after-tax earnings, or NT$1.3 in earnings per share. But the company's gross profit margin declined by one percentage point to 19.9% in the first quarter, due mainly to the sharp price hike in raw materials and the increased overhead costs.

To meet the increased demand for industrial-automation solutions amid the implementation of China's 12th five-year development plan, Delta has deployed 400-odd distributors of industrial-automation devices in China.

Delta anticipated its sales of industrial-automation devices in China will account for over half of its total sales of the products worldwide. Hai believed Delta's sales of industrial-automation devices will grow over 50% annually in 2011.