THREE-MONTH WINDOW:George Huang said that the company does not anticipate forex losses for at least the next month or two, as it has locked its euro exchange rate
Taipei Times
Date: Jul 07, 2016
By: Lauly Li / Staff reporter
Acer Inc (宏碁) yesterday said it is likely to post foreign-exchange gains for last quarter, dismissing market speculation that the company was hit by the sharp depreciation of the euro against the US dollar following Britain’s vote to leave the EU.
“We are doing OK in hedging foreign-exchange risks. Acer might even book a small forex gain for last quarter,” Acer chairman George Huang (黃少華) told reporters on the sidelines of an Acer news conference at the firm’s headquarters in New Taipei City’s Sijhih District (汐止).
Industry watchers said that Acer — along with other Taiwanese technology companies — might be hurt by slowing European demand and forex losses after the UK’s historic vote, given its 40 percent revenue exposure to European markets.
As part of its efforts to hedge against volatile exchange rates, Huang said
Acer purchased euros at a fixed rate against the greenback last month, adding that the euro’s recent depreciation would not negatively affect the company’s earnings. [FULL STORY]