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WPG (TSE:3702) Reports Its Consolidated Operating Profit of First Quarter Set Single Quarter Record High; With 34.1% YoY Net Income increase, Diluted EPS of NT$0.84

 2014-05-06

WPG (TSE:3702) Reports Its Consolidated Operating Profit of First Quarter Set Single Quarter Record High; With 34.1% YoY Net Income increase, Diluted EPS of NT$0.84

 

2014/05/06

 

Benefited from increased demand and growing shipments of smart phone ,tablet, cloud computing and consumer electronics, WPG, the largest distributor of semiconductor components in Asia, announced its first quarter consolidated sales reached NT$102.3 billion, over the expectation and exceeded NT$100 Billion. Gross Margin also reached 4.7%, over the high side of 4.3%~4.6% guidance. Benefited from effective expense control, expense of sales were cut down to 2.83%, Operating profit was NT$1.98 billion, represented 38.2% increase over previous year’s figures. Operating margin reached 1.86%, over the high side of 1.4%~1.65% guidance and also set the groups quarterly record. Net income was NT$1.395 billion, represented 38.7% and 34.1% increase over previous quarter’s figures and previous year’s figures. EPS was NT$0.84 per share.

 

The profit growth has been delivered by domestic demand of emerging markets. Contribution of 3C products such as mid to high-end and low-end smartphone, tablet, and wireless broadband was continued growing. Non-3C segments’ contribution such as automobile, medical and industrial electronics remained healthy. Key financial indices: Return on Working Capital (ROWC) and ROE was 10.8% and 13.6% respectively.

 

Management guides the total sales of Second quarter 2014 will be between NT$105 billion and NT$ 110 billion, with the gross margin in the range of 4.4%~4.7% and the operating margin between 1.65%~1.9%.

 

In the first quarter of 2014, 62 application solutions were provided in the fields of Industrial (27), Lighting (11), Security (10), cell phone / communication (8), MID (4) and MB (2), focusing on applications of small home appliance and power supply, wireless power, low power electronics, Internet Of Things(IoT), wireless communication, surveillance, dim LED, smart phone, tablet and MB.

 

Table: WPG Holdings Consolidated Management Financials for the year ended March 31, 2014. (in brief)

 

Units:NT$ million

Income Statement (2014/1/1~2014/3/31)

 

Balance Sheet (2014/3/31)

Item

Amount

 

Item

Amount

Net Sales

102,329

 

Current Assets

126,822

Cost of Goods Sold

(97,523)

 

 Accounts receivables

69,874

Gross Profit

4,806

 

 Inventory

41,181

Operating Expenses

(2,898)

 

Other assets

14,256

Operating Profit

1,908

 

Total Assets

141,078

Non-op Expenses

(179)

 

Current Liabilities

93,899

Profit Before Tax

1,729

 

 Current Borrowing

48,568

Tax

(336)

 

 Accounts payables

40,153

Minority & Others

2

 

LT Liabilities

4,176

Profit After tax

1,395

 

Total Liabilities

98,781

EPS (Note)

0.84

 

Common Stock

16,557

Net book value per share (Note)

25.48

 

Stockholders Equity

42,297

Note:Based on weighted average outstanding shares.

 

 

Cash flows (2014/1/1~2014/3/31)

Item

Amount

Income before Income Tax

1,729

Change in NWC

(2,464)

Operating cash inflow /(outflow)

(2,037)

Investment cash inflow /(outflow)

(4)

Change in Financial Debt

1,676

Financing cash inflow /(outflow)

1,672

Cumulative translation adjustments

1,033

Net Cash

664

Beginning cash balance

9,459

Ending cash balance

10,122

 

IR contacts:Cliff Yuan/ Kathryn Chen / Zoe Peng

Tel:886-2-7712-5268 / 886-2-7712-5278 / 886-2-7712-5262

Email address:  ir@WPGholdings.com

Corporate website:  www.WPGholdings.com