Nam Tai Sets Another Sales Record
VANCOUVER -- Nam Tai Electronics reported second-quarter net income of $6 million on sales of $185 million, a company record for quarterly sales.
For the June quarter, the EMS provider's sales were up 25.5% year-over-year, while net income fell 92.8%. In Q2 2004, the company received a one-time gain of $71 million from the IPO of one of its subsidiaries. Gross profit was up 7% to $23.8 million.
The results bested Nam Tai's previous upper sales guidance of $180 million.
Gross profit margin improved to 12.9% from 11.7% sequentially. The firm reiterated a target sales growth of 30 to 35% in 2005 and gross profit margin of 12%."
Joseph Li, chief executive, said the results were "a testament to the continued success of our strategy of focusing on the key component sub-assemblies business."
Nam Tai said it will expand its operation in China and restructure its Hong Kong workforce. It is "actively exploring" additional land in Shenzhen to further expand its manufacturing facilities.
