STRATEGY: The company this year will focus on responding quickly to changing market dynamics and improving its components subsidiaries’ profitability, an executive said

Taipei Times
Date: Mar 16, 2018
By: Lauly Li  /  Staff reporter

Pegatron Corp (和碩), Apple Inc’s second-largest iPhone assembler, yesterday reported a nearly 40 percent annual drop in net income for last quarter, dragged down by weak iPhone sales and declining contributions from its components subsidiaries.

Net profit last quarter was NT$3.72 billion (US$127.4 million), compared with NT$5.86 billion a year ago, marking the company’s lowest record over the corresponding period in the past five years, company data showed.

“The ramp-up of a major communication product started later than planned and the peak season for the product ended earlier than expected. Pegatron’s expanded production only ran on full capacity for one or two months,” chief financial officer Charles Lin (林秋炭) told a teleconference.

A low utilization rate, surging costs on idle personnel and capacity expansion expenses affected Pegatron’s margin performance last quarter, Lin said.    [FULL  STORY]