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Yageo seeing customers slow down pace of orders

2.11.2018
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Source: DigiTimes news

Yageo expects its operation to weaken in the fourth quarter of 2018 as the company has seen its customers decelerate their pace of orders.

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Seasonality and the escalating US-China trade disputes have had a negative impact on demand coming from its customers in Greater China, Yageo indicated. Nevertheless, Yageo is positive about the evolution of the passive component industry, and will continue to vie for a bigger presence in the global marketplace.

While building new production lines for conventional products, Yageo will also be improving its product mix by raising the output and sales of its high-end products such as high-voltage power resistors, precision resistors, and automotive and industrial resistors and capacitors. Meanwhile, Yageo is looking to further expand its ties with the world’s major ODMs/OEMs.

Yageo reported net profits reached a record high of NT$14.5 billion (US$471.5 million) in the third quarter of 2018. EPS for the quarter came to NT$34.35.

Yageo posted revenues surged 59.3% sequentially to NT$30.67 billion in the third quarter, while gross margin climbed 5.2pp on quarter to 69.3%.

Yageo’s net profits for the first three quarters of 2018 amounted to NT$29.56 billion, with EPS reaching NT$70.29.

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