Taiwan’s Compal sees Q3 shipments falling

TAIPEI, Sept 1 (BestGrowthStock) – Taiwan’s Compal Electronics Inc
(2324.TW: ), the world’s No.2 contract laptop maker, said on
Wednesday it expects third quarter shipments to fall by a single
digit percent from the second quarter, but pick up in the fourth
quarter.

Compal President Ray Chen also told an investor conference
that fourth-quarter shipments would rise 10 percent over the
third quarter. Gross margins in the third quarter would fall
slightly from the second quarter, he said.

A weak third quarter has been widely expected by analysts.
Rvial and sector leader Quanta Computer (2382.TW: ) said on Tuesday
its third quarter shipments would be flat or fall slightly from
the previous three months. [ID:nTOE67T03Y].

Analysts say earnings at both Quanta and Compal, major
suppliers to top brands such as Hewlett-Packard (HPQ.N: ) and Dell
(DELL.O: ), could have peaked in the second quarter amid
uncertainties in the European and U.S. markets.

Chen added that Compal was “trying hard” to reach its full
year shipment target, but this was “difficult”.

Compal said on Tuesday it earned a net profit of T$6.4
billion ($200 million) in April-June, double from a year earlier
but below the first quarter’s T$8.52 billion.
(US$1=T$32)
(Reporting by Baker Li; Editing by Jonathan Standing)

Taiwan’s Compal sees Q3 shipments falling