Catcher net profit shoots up in Q2 on non-operating income

2019/08/09 22:33:56 fontsize-small fontsize-default fontsize-big
Catcher net profit shoots up in Q2 on non-operating income

Taipei, Aug. 9 (CNA) Catcher Technology Co., a supplier of metal casings to Apple Inc., saw its net profit in the second quarter rise more than 60 percent from the previous quarter because of strong income from activities not related to its main business operations.

In a statement issued Friday, Catcher said its net profit for the quarter was NT$2.73 billion (US$87.05 million), up 60.8 percent from a quarter earlier, but its operating profit fell almost 40 percent from a quarter earlier to NT$1.47 billion due to rising costs.

Non-operating income topped NT$4.61 billion in the second quarter, more than offsetting the decline in operating profit to give the company strong quarter-on-quarter profit gains, Catcher said.

The company did not elaborate on the sources of its high non-operating income.

Catcher posted earnings per share of NT$3.54 for the second quarter, up from NT$2.20 in the first quarter.

Although Catcher's consolidated sales rose 1.7 percent in the second quarter from a quarter earlier to NT$16.07 billion, its higher costs dragged down its gross margin -- the difference between revenue and cost of goods sold -- by 2.29 percentage points from a quarter earlier to 23.06 percent, the metal casing maker said.

In the first six months of the year, Catcher posted a net profit of NT$4.42 billion, down 69.4 percent from a year earlier, with EPS of NT$5.74, down from NT$18.81 for the same period of last year, the company said.

Catcher's consolidated sales fell 22.55 percent year-on-year in the first half to NT$31.88 billion, and its gross margin slumped 17.8 percentage points to 24.2 percent.

Analysts said Catcher is expected to see its sales pick up in the second half of the year as inventories are drawn down and global brands launch new gadgets.

Its sales should benefit from the next generation of iPhones that could be unveiled in September, they said, a trend that may have already been seen in the company's July sales.

Catcher posted consolidated sales of NT$8.68 billion for the month, up 38 percent from a month earlier and up 15.77 percent from a year earlier. It was the company's highest level of sales in any month since November 2018, when they totaled NT$9.62 billion.

Analysts cautioned, however, that despite signs of a better second half for the company, it could still be hurt by lower global demand caused by trade friction between the United States and China.

(By Chang Chieh-chung and Frances Huang)
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