Electronics Production | April 03, 2006
Weak profitability for Inventec
EMS provider Inventec, with TomTom- and Apple orders accounting for about 80% of its total revenues, is reportedly having difficulties with its profitability.
Inventec on the 28th of March reported after-tax profits of NT$2.99 billion (US$92 million) on revenues of NT$113.4 billion in 2005. Goldman Sachs estimated that Inventec's after-tax profits for the last quarter 2005 was about 36% below expectations. Goldman Sachs reacted on this and lowered the target price for the Inventec stock for the second time within 15 days.