Compal Electronics lowers 2008 sales target by up to 13%

Sep. 9, 2008 (China Knowledge) - Compal Electronics, the world's second largest contract maker of laptops in terms of shipment, revised down its annual sales target by up to 13%, largely dragged by weary demand from the U.S. and the European markets, said sources. The Taiwan-based electronics manufacturer said in a statement that it expects to ship 28 million to 29 million units of notebook this year, down from a previous forecast of 32 million. The company also estimated the third-quarter shipment would grow 15% sequentially from 6.10 million units of the second quarter, said Chen Ruicong, General Manager with Compal Electronics, adding that the figure was lower than the earlier guidance of 20%. Chen noted the company's third-quarter gross profit margin is likely to remain unchanged from the previous quarter at 5.3%. Compal Electronics announced earlier that it realized revenues of NTD 188.06 billion (US$5.96 billion) for the first half of this year, a decrease of 4% compared to the same period of last year. Profit after tax was NTD 6.42 billion, representing an increase of 10% year-on-year, and the earnings per share (EPS) reached NTD 1.65. Compal shipped around 12 million units of notebooks during the Jan.-Jun. period. Growth in the second half will mainly come from shipments to Dell Inc.