Delta Electronics Hits Record-high Gross Profit Margin in Q3

Taipei, Nov. 1, 2012 (CENS)--Delta Electronics Corp., a major maker of power supplies and electronic parts in Taiwan, saw gross profit margin hit a record high of 24.5% in the third quarter, with net profits up 65% year on year (YoY) to NT$4.71 billion (US$157 million), NT$5.13 (US$0.17) in EPS (earnings per share).

Aggressively transforming from a component maker to system integration provider since 2011, Delta has improved gross profit margin for four consecutive months.

Yancey Hai, chairman of Delta, says the firm's ROE (return on equity) reached 20% in the first three quarters, adding that, despite having only increased 3% in revenues in the third quarter, Delta had improved product mix with increasing emphasis on cloud-computing products, power supplies for servers, industrial automation, passive components, and large-sized power supplies, hence achieving NT$4.71 billion (US$157 million) in net profits in the third quarter to be the second highest in history, up 18% from the previous quarter, with NT$1.95 (US$0.065) in EPS.

Delta's consolidated revenues in the first three quarters grew 4% YoY to NT$133.509 billion (US$4.45 billion), with operating gross margin rising 22.01% YoY to NT$30.393 billion (US$1.01 billion), 22.8% in consolidated gross profit margin, NT$15.731 billion (US$524.37 million) in pretax earnings, NT$12.36 billion (US$412 million) in net earnings, and NT$5.13 (US$0.17) in EPS.

Looking to the fourth quarter, Hai admitted that the release of Windows 8 would not immediately boost the firm's operations in the fourth quarter, with struggling sales of Ultrabook and dull global economic climate also expected to compromise operations. However, Hai is still conservatively optimistic about Delta's performance in the fourth quarter due to its diverse and improving product mix.