TPV Technology, the world’s biggest contract maker of computer monitors, said third-quarter profit fell 19% as expansion in the flat-panel television market lowered margins.
Net income dropped to $32 million ($41.9 million), or 1.33 cents a share, from US$39.5 million, or 1.73 cents, a year earlier, TPV said in a statement to Hong Kong’s stock exchange today. That compares with the US$31.9 million median profit estimate of three analysts surveyed by Bloomberg. Sales rose to US$2.95 billion from US$2.26 billion a year earlier.
TPV’s profitability came under pressure as the company sought to attract orders for the assembly of flat-panel televisions from clients including Sharp Corp. and Toshiba Corp. Lower selling prices for TVs eroded higher earnings at TPV’s monitor business, which benefitted from increased demand for personal computers by businesses.
“TPV’s margins in TVs are lower than for PC monitors,” Steven Zhang, who rates TPV shares “hold” at DBS Vickers in Hong Kong, said before the earnings. Consumer demand for flat-panel TVs has been weaker-than-expected in some markets, such as China, Zhang said.
TPV shares fell 1.2% to HK$5 in Hong Kong trading before the announcement.
{jcomments on}