Compal Sees Q3 Profit Grow

Compal Electronics reported 9% sequential growth in net profit for the third quarter, rising to NT$2.6 billion ($83.9 million). Last quarter’s profit was supported by around NT$1.7 billion ($54.9 million) in non-operating, investment and foreign exchange gains, including those from a joint venture with Lenovo. Turnover in Q3 was 12.3% higher than Q2 at NT$226.8 billion ($7.3 billion).

For the final quarter of the year, Compal said it expects shipments of notebooks to fall 5% from Q3, while for the year ahead, shipments are forecast to remain unchanged or to decline 2-3%. By comparison, increased orders from existing Compal clients for smartphones and tablets are expected to help the company to achieve double the volume of shipments in Q4 than it experienced in the third quarter. This improvement in smart device sales will help Compal reach its goal of increasing non-PC contributions to 30% of its total shipments in Q4, earlier that an original target of next year.

In the first nine months of this year, Compal reported a net profit of NT$3.1 billion ($11.1 million) on turnover of NT$599.3 billion ($19.3 billion).