Tech firms hit by forex fluctuations

UPS AND DOWNS:The decline in the Chinese yuan is hurting Taiwanese firms with factories in China, while other companies are affected by the NT dollar’s strength

Taipei Times
Date: Oct 18, 2016
By: Lauly Li / Staff reporter

Local contract electronics makers such as Pegatron Corp (和碩) and Inventec Corp (英業達) are under pressure as the New Taiwan dollar’s and Chinese yuan’s fluctuations against the US dollar affected their financial results for last quarter.

“The strong NT dollar and the weak yuan against the US dollar are considered negative factors in the company’s non-operating performance last quarter,” a Pegatron investor relations official said by telephone.

Investors focus on Pegatron’s foreign-exchange figures is when the company releases its earnings performance every quarter.

The company has manufacturing plants Shanghai, Chongqing, Suzhou and Kunshan, China. It pays construction and plant maintenance costs, as well as workers’ salaries in yuan.     [FULL  STORY]

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