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January 10, 2011, 4:33 AM EST
By Tim Culpan
(Updates with sales figures in second paragraph.)
Jan. 10 (Bloomberg) -- Compal Electronics Inc., the world’s second-largest maker of notebook computers, posted revenue that missed analyst estimates after client Acer Inc. said sales will be less than expected because of snowstorms in Europe.
Fourth-quarter parent-level revenue dropped 6.8 percent from a year earlier to NT$207 billion ($7.07 billion), according to figures calculated from Compal’s monthly sales data confirmed by the Taipei-based company today. The average of 14 analyst estimates compiled by Bloomberg was for sales of NT$224 billion.
Acer, the world’s second-largest computer maker, said last week that snowstorms in Europe forced the company to miss its guidance for fourth-quarter sales. Compal’s revenue rose 1.7 percent from the prior quarter, less than the 8 percent gain predicted by RBS Asia Ltd.
“It’s below expectations as they’re affected by lower sales at Acer, which is their largest customer,” Steven Tseng, a Taipei-based analyst at RBS, said by telephone. He has a “hold” rating on Compal and Acer.
Sales at Acer, which had predicted fourth-quarter revenue would climb 5 percent to 10 percent from the third quarter, “won’t be as good as expected,” Henry Wang, an Acer spokesman, said Jan. 5. Taipei-based Acer, which gets more than 50 percent of revenue from Europe, Middle East and Africa, suffered as countries such as Germany faced their coldest winter in 40 years.
The sales decline “should be a one-off because of the European weather,” Chang Chihming, head of investor relations at Compal in Taipei, said by telephone.
Fourth-quarter shipments were unchanged from the prior three-month period at 11.7 million units, compared with Compal’s projection for 5 percent growth.
“If Acer’s problem really is just a one-off, then the situation should get better,” RBS’s Tseng said. “Demand in China ahead of the Lunar New Year next month would be key for investor sentiment on Compal.”
--Editors: Lena Lee, Frank Longid
To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.
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(Updates with sales figures in second paragraph.)
Jan. 10 (Bloomberg) -- Compal Electronics Inc., the world’s second-largest maker of notebook computers, posted revenue that missed analyst estimates after client Acer Inc. said sales will be less than expected because of snowstorms in Europe.
Fourth-quarter parent-level revenue dropped 6.8 percent from a year earlier to NT$207 billion ($7.07 billion), according to figures calculated from Compal’s monthly sales data confirmed by the Taipei-based company today. The average of 14 analyst estimates compiled by Bloomberg was for sales of NT$224 billion.
Acer, the world’s second-largest computer maker, said last week that snowstorms in Europe forced the company to miss its guidance for fourth-quarter sales. Compal’s revenue rose 1.7 percent from the prior quarter, less than the 8 percent gain predicted by RBS Asia Ltd.
“It’s below expectations as they’re affected by lower sales at Acer, which is their largest customer,” Steven Tseng, a Taipei-based analyst at RBS, said by telephone. He has a “hold” rating on Compal and Acer.
Sales at Acer, which had predicted fourth-quarter revenue would climb 5 percent to 10 percent from the third quarter, “won’t be as good as expected,” Henry Wang, an Acer spokesman, said Jan. 5. Taipei-based Acer, which gets more than 50 percent of revenue from Europe, Middle East and Africa, suffered as countries such as Germany faced their coldest winter in 40 years.
The sales decline “should be a one-off because of the European weather,” Chang Chihming, head of investor relations at Compal in Taipei, said by telephone.
Fourth-quarter shipments were unchanged from the prior three-month period at 11.7 million units, compared with Compal’s projection for 5 percent growth.
“If Acer’s problem really is just a one-off, then the situation should get better,” RBS’s Tseng said. “Demand in China ahead of the Lunar New Year next month would be key for investor sentiment on Compal.”
--Editors: Lena Lee, Frank Longid
To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net.
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