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WPG (TSE:3702) Announced Its Record High in Consolidated Sales, Operating Profit and Net Income of Second Quarter; EPS was NT$0.91 and NT$1.75 for Second Quarter and YTD Respectively.

 2014-08-04

WPG (TSE:3702) Announced Its Record High in Consolidated Sales, Operating Profit and Net Income of Second Quarter; EPS was NT$0.91 and NT$1.75 for Second Quarter and YTD Respectively.

 

2014/08/04

 

Benefited from effective expense control and increased demand of emerging markets combined with growing shipments of low-end communication electronic products, cloud computing and consumer electronics, WPG, the largest distributor of semiconductor components in Asia, announced its record high in Consolidated Sales, Operating Profit and Net Income of Second Quarter. The reported second quarter consolidated sales reached NT$113.76 billion, over the expectation. Gross Margin reached 4.67%, near the high side of 4.3%~4.6% guidance. Benefited from effective expense control, expense of sales were cut down to 2.77%, Operating profit was NT$2.152 billion, represented 27.4% increase over previous year’s figures, set the groups quarterly record. Operating margin reached 1.89%, near the high side of 1.65%~1.9% guidance. Net income was NT$1.51 billion, represented 8.2% and 9.6% increase over previous quarter’s figures and previous year’s figures. EPS was NT$0.91 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 smart phone, tablet, wireless broadband and NB 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 11.5% and 15.3% respectively.

 

Management guides the total sales of third quarter 2014 will be between NT$118 billion and NT$123 billion, with the gross margin in the range of 4.4%~4.7% and the operating margin between 1.75%~1.95%.

 

In the Second quarter of 2014, 58 application solutions were provided in the fields of Industrial (18), cell phone / communication (13), MID (9), Lighting (7), computer (including Tablet)/ peripheral (4), Energy (4) and MB (3), focusing on applications of digital power, small home appliance and power supply, smart phone, low-cost quad-core smart phone, NFC-enabled cell phones, tablet, cloud, NAS-Network Attached Storage, micro inverter and MB

Table: WPG Holdings Consolidated Management Financials for the year ended June 30, 2014. (in brief)

Units:NT$ million

Income Statement (2014/1/1~2013/6/30)    Balance Sheet (2014/6/30)

Item

Amount

 

Item

Amount

Net Sales

216,047

 

Current Assets

130,540

Cost of Goods Sold

(205,934)

 

Accounts receivables

73,335

Gross Profit

10,113

 

Inventory

42,011

Operating Expenses

(6,053)

 

Other assets

14,024

Operating Profit

4,061

 

Total Assets

144,564

Non-op Expenses

(446)

 

Current Liabilities

100,752

Profit Before Tax

3,615

 

Current Borrowing

50,443

Tax

(705)

 

Accounts payables

40,366

Minority & Others

(4)

 

LT Liabilities

4,051

Profit After tax

2,906

 

Total Liabilities

105,540

EPS (Note)

1.75

 

Common Stock

16,557

Net book value per share (Note)

23.52

 

Stockholders Equity

39,025

Note:Based on weighted average outstanding shares.

 

Cash flows (2014/1/1~2014/6/30)

Item

Amount

Income before Income Tax

3,615

Change in NWC

(6,541)

Operating cash inflow /(outflow)

(3,583)

Investment cash inflow /(outflow)

262

Change in Financial Debt

3,427

Financing cash inflow /(outflow)

3,423

Cumulative translation adjustments

52

Net Cash

154

Beginning cash balance

9.459

Ending cash balance

9,612

 

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