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Acer's Q2 earnings affected by slow demand, tax payment

2012/08/17 19:00:52

Taipei, Aug. 17 (CNA) Acer Inc., one of the world's leading personal computer vendors, reported Friday lower earnings for the second quarter of this year, compared with the first quarter, due to slowing global demand and a one-time tax payment in Europe.

Acer posted about NT$56 million (US$1.86 million) in net profit or NT$0.02 per share for the April-June period, down from NT$331 million or NT$0.12 per share recorded in the first quarter. The second quarter earnings per share (EPS) failed to meet market expectations.

Earlier this week, Barclays had anticipated Acer's second quarter EPS would stand at NT$0.13, while a market consensus showed an estimate of NT$0.19.

The PC vendor said the global PC market for the second quarter appeared weaker than the previous quarter to affect buying in Europe, the United States, China and other markets in the Asia Pacific region.

As a result, Acer recorded NT$110.55 billion in consolidated sales for the second quarter, down 2.2 percent from a quarter earlier. But, the second quarter sales rose 8.3 percent from a year earlier.

In the past quarter, Acer paid about NT$410 million in a one-time tax payment in Europe, which dragged down its bottom line.

However, Acer said its operating margin improved to 0.45 percent for the second quarter from 0.1 percent recorded in the first quarter after it reported NT$433 million in operating profit in the past quarter, compared with NT$138 million registered in the previous quarter.

For the whole of 2011, Acer posted a net loss of NT$6.6 billion, or a loss per share of NT$2.52, after it incurred massive losses in the second and third quarter due to a US$150 million write-off in the second quarter to clear inventory in its European operations.

Acer returned to profit in the fourth quarter of last year by posting NT$0.03 in EPS, and its bottom line continued to improve in the first quarter of this year.

In the first half of this year, the PC vendor posted NT$387 million in net profit or NT$0.14 per share, compared with a loss per share of NT$2.12 recorded a year earlier, while its consolidated sales fell 2.7 percent year-on-year to NT$223.58 billion.

In July, Acer's non-consolidated sales totaled NT$22.66 billion, down 43 percent from June and also down 26 percent from a year earlier.

However, Acer said it expects its sales will recover in August and September on the back of the launch of new PC models bundled with Microsoft's Windows 8 operating system.

The company said its consolidated sales for the July-September period are expected to stay little changed from the second quarter.

(By Lo Hsiu-wen and Frances Huang)