Yageo sees February revenues fall 35%

Source: DigiTimes news

Yageo, a supplier of MLCCs and chip resistors, has reported consolidated revenues fell 35.1% sequentially and 3.6% on year to NT$3.1 billion (US$100.35 million) in February 2019.

Yageo attributed its negative performance to fewer working days during the month, ongoing inventory correction at its China-based distributor clients and weak demand from China due to trade disputes between the US and China.

Yageo disclosed its cumulative 2019 revenues through February increased 16.6% from a year earlier to NT$7.88 billion.

Yageo reiterated the company’s continued efforts to optimize its product mix for profit reasons and to enhance its worldwide market presence.

The market for entry-level and mid-range MLCCs has become oversupplied, while the supply of high-end ones for automotive and industrial applications remains tight, according to market watchers. Prices for general-purpose MLCCs are set to fall further in the second quarter due to ongoing inventory digestion in the supply chain, the watchers indicated.

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