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TPV Technology Q3 hit by poor TVs and monitors demand

Staff writer |
TPV Technology announced its unaudited consolidated results for the three months ended September 30, 2013. TPV's third-quarter performance was again adversely affected by the lackluster demand for TVs and monitors in the global markets.




The slowdown of economic growth in most emerging markets and the steep depreciation of their currencies against the US Dollar also aggravated the situation. As a consequence, consolidated revenue for the reviewing quarter fell by 2.1% compared with the corresponding period a year ago, from $3,223.6 million to $3,156.1 million.

With its gross profit (GP) margin reduced from 8% to 6.8% during the same period, and a foreign exchange loss of $38.9 million, the Group recorded a loss of $45.7 million.

In geographical terms, the Group derived $1 billion or 31.7 % of its revenues from China (3Q12: $977.2 million); $859.8 m illion or 27.2% from Europe (3Q12: $961.6 million); $512.9 million or 16.3% from North America (3Q12: $466.3 million); $373.4 million or 11.8 % from South America (3Q12: $445.6 million); and $408.7 million or 13 % from the rest of the world (3Q12: $372.8 million).

The TV business segment shipped 4 million units during the third quarter, compared with 3.9 million units in the same period last year. Its revenue amounted to $1,264.5 million (Q3 2012: $1,440.6 million), a 12.2% drop in year-on-year terms. Meanwhile, the average selling price (ASP) came down to $319.90 (Q3 2012: $365.30) as the result of keen price competition and the preference of consumers for products with basic features during difficult e conomic times.

In addition, the Group made a provision of $13.6 million for TV inventories, due to the declining price trend. The GP margin consequently fell to 6.9 % (Q3 2012: 10.2%), which translates to a GP per set of $22.00 (Q3 2012: $37.20). The segment recorded an operating loss of $96.6 million for the quarter.

On the other hand, the Group's monitor segment shipped 15 million units (Q3 2012: 14.7 million units), an increase of 2.4% year-on-year, against the backdrop of the industry's cyclical decline. Its segmental revenue also rose to $1,560.9 million (Q3 2012: $1,494.8 million), a 4.4 % increase over the previous quarter. Its ASP was slightly up at $103.90 (Q3 2012: $102.00), as were its GP margin of 7.6% (Q3 2012: 6.6%) and its GP per set of $7.90 (Q3 2012: $6.80).

The improvement was mainly due to the enrichment of its product portfolio, as well as the migration of end-users to larger screen sizes. As a result, this business segment generated an operating profit of $42.9 million.


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