Record high! WPG (TSE:3702) Reports Consolidated Second Quarter Sales of NT$62.4 billion, with diluted EPS of NT$1.66, +85.6% YoY Increase
2010-08-02
Record high! WPG (TSE:3702) Reports Consolidated Second Quarter Sales of NT$62.4 billion, with diluted EPS of NT$1.66, +85.6% YoY Increase
EPS NT$ 3.06 for the First Half Year of 2010, +99.7% YoY Increase
Taipei, Taiwan
2010/8/2
WPG, the largest semiconductor components distributor in Asia, reported second quarter 2010 consolidated sales of NT$62.4 billion, the operating margin posted a better-than-expected increase, ahead of guidance range to 2.71%, the net income reached NT$1,485 million, representing 87% growth in the year ago quarter, the diluted earning per share would have been NT$ 1.66, the quarterly sales, net income and EPS all beat the records. WPG Annual General Meeting resolved NT$2.0 cash dividend per share & 18 percent stock dividend (180 shares for every 1,000 owned) in June 2010.
“The second quarter’s results exceeded our own expectations, the execution was great, the profit has been delivered on the sustainable growth in 3C electronics and LED energy saving appliances,” said Simon Huang, chairman and president. “Due to profit earned from increasing technical service providing and effective inventory management, Q210 Return on Working Capital (ROWC) was 19.8%, and ROE was 28.8%, inventory turnover in days remained at healthy level around 31 days.”
“Looking ahead, we believe the total third quarter sales will be between NT$66 billion and NT$ 69 billion, with the growth margin in the range of 5.6%~5.8% and we expect the average operating margin is 2.6%~2.8%,” said Cliff Yuan, vice president of corporate finance and accounting.
For continued profitable, above-market growth in the global semiconductor component distribution market, WPG Annual General Meeting resolved Yosun (2403 TT) acquisition by share swap; WPG also announced its subsidiary, SAC, to acquire the electronic components business of a Singapore-based distributor, SAPL, in May 2010; alone with AIO acquisition of another subsidiary, WPI, the above three acquisitions will be effective in the second half of 2010.
“WPG has three new franchises this quarter, RedMere, who provides cable-embedded semiconductors and advanced cable reference designs; APAQ manufactures the solid electrolytic capacitor and ATLab, who is specialized in mixed-signal System-on-Chip (SoC) fields,” stated Scott Lin, vice president of marketing management unit. ” WPG has occupies a unique, value-added position in the supply chain, with growth opportunities across many customer segments, end markets and technologies, in the second quarter, we have provided more than 38 application solutions in the fields of computer (18), consumer electronics (6), communication (7) and general (7), focusing on applications of notebook and portable devices (for more information please visit WPG Tech on-line, https://www.wpgholdings.com/wpgtechonline.php).”
Table: WPG Holdings Consolidated Management Financials for the quarter ended June 30, 2010. (in brief)
Units：NT$ million
Income Statement (2010/01/01~2010/6/30)
Item Amount
Net Sales 120,472
Cost of Goods Sold(113,267)
Gross Profit 7,204
Operating Expenses (3,984)
Operating Profit 3,220
Non-op Expenses 69
Profit Before Tax 3,289
Tax (533)
Minority & Others (13)
Profit After tax 2,743
EPS (Note) 3.06
Net book value per share(Note)23.60
Note：Based on weighted average outstanding shares.
Balance Sheet(2010/6/30)
Item Amount
Current Assets 72,469
Accounts receivables38,408
Inventory 22,818
Other assets 2,875
Total Assets 75,345
Current Liabilities49,318
Accounts payables26,939
LT Liabilities 4,569
Total Liabilities54,145
Common Stock 8,946
Stockholders Equity21,200
Cash flows (2010/1/1~2010/6/30)
Item Amount
Net Income 2,743
Changes of NWC (7,169)
Operating cash inflow(5,715)
Investment cash inflow 766
Financial Debt 4,014
Financing cash outflow 3,957
Cumulative translation
adjustments 305
Net Cash (687)
Beginning cash balance 6,514
Ending cash balance 5,826
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268/ ext.5278
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com
EPS NT$ 3.06 for the First Half Year of 2010, +99.7% YoY Increase
Taipei, Taiwan
2010/8/2
WPG, the largest semiconductor components distributor in Asia, reported second quarter 2010 consolidated sales of NT$62.4 billion, the operating margin posted a better-than-expected increase, ahead of guidance range to 2.71%, the net income reached NT$1,485 million, representing 87% growth in the year ago quarter, the diluted earning per share would have been NT$ 1.66, the quarterly sales, net income and EPS all beat the records. WPG Annual General Meeting resolved NT$2.0 cash dividend per share & 18 percent stock dividend (180 shares for every 1,000 owned) in June 2010.
“The second quarter’s results exceeded our own expectations, the execution was great, the profit has been delivered on the sustainable growth in 3C electronics and LED energy saving appliances,” said Simon Huang, chairman and president. “Due to profit earned from increasing technical service providing and effective inventory management, Q210 Return on Working Capital (ROWC) was 19.8%, and ROE was 28.8%, inventory turnover in days remained at healthy level around 31 days.”
“Looking ahead, we believe the total third quarter sales will be between NT$66 billion and NT$ 69 billion, with the growth margin in the range of 5.6%~5.8% and we expect the average operating margin is 2.6%~2.8%,” said Cliff Yuan, vice president of corporate finance and accounting.
For continued profitable, above-market growth in the global semiconductor component distribution market, WPG Annual General Meeting resolved Yosun (2403 TT) acquisition by share swap; WPG also announced its subsidiary, SAC, to acquire the electronic components business of a Singapore-based distributor, SAPL, in May 2010; alone with AIO acquisition of another subsidiary, WPI, the above three acquisitions will be effective in the second half of 2010.
“WPG has three new franchises this quarter, RedMere, who provides cable-embedded semiconductors and advanced cable reference designs; APAQ manufactures the solid electrolytic capacitor and ATLab, who is specialized in mixed-signal System-on-Chip (SoC) fields,” stated Scott Lin, vice president of marketing management unit. ” WPG has occupies a unique, value-added position in the supply chain, with growth opportunities across many customer segments, end markets and technologies, in the second quarter, we have provided more than 38 application solutions in the fields of computer (18), consumer electronics (6), communication (7) and general (7), focusing on applications of notebook and portable devices (for more information please visit WPG Tech on-line, https://www.wpgholdings.com/wpgtechonline.php).”
Table: WPG Holdings Consolidated Management Financials for the quarter ended June 30, 2010. (in brief)
Units：NT$ million
Income Statement (2010/01/01~2010/6/30)
Item Amount
Net Sales 120,472
Cost of Goods Sold(113,267)
Gross Profit 7,204
Operating Expenses (3,984)
Operating Profit 3,220
Non-op Expenses 69
Profit Before Tax 3,289
Tax (533)
Minority & Others (13)
Profit After tax 2,743
EPS (Note) 3.06
Net book value per share(Note)23.60
Note：Based on weighted average outstanding shares.
Balance Sheet(2010/6/30)
Item Amount
Current Assets 72,469
Accounts receivables38,408
Inventory 22,818
Other assets 2,875
Total Assets 75,345
Current Liabilities49,318
Accounts payables26,939
LT Liabilities 4,569
Total Liabilities54,145
Common Stock 8,946
Stockholders Equity21,200
Cash flows (2010/1/1~2010/6/30)
Item Amount
Net Income 2,743
Changes of NWC (7,169)
Operating cash inflow(5,715)
Investment cash inflow 766
Financial Debt 4,014
Financing cash outflow 3,957
Cumulative translation
adjustments 305
Net Cash (687)
Beginning cash balance 6,514
Ending cash balance 5,826
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268/ ext.5278
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com