UPDATE 3-Quanta Q1 net rises; ups sales forecast
(Recasts, adding Compal results)
By Sheena Lee
TAOYUAN, Taiwan, April 29 (Reuters) - The world's top two makers of contract laptop PCs, Quanta Computer Inc (2382.TW: Cotización) and Compal Electronics (2324.TW: Cotización), posted quarterly profit gains of around a fifth, and sector leader Quanta raised its 2008 sales forecast by 11 percent on strong emerging market demand.
Taiwan's Quanta Computer lifted its 2008 sales target to 40 million units from a previous 36 million, and said it expects to ship about 10 percent more notebook PCs in the second quarter from the first. It shipped around 30 million units in 2007.
"Notebook growth is coming in faster than we expected," said Vice Chairman C.C. Leung said on Tuesday. "There's some slowdown from the U.S., but Asia and emerging markets are still seeing growth. So far things look positive for overall notebook demand."
Analysts had warned that Quanta's growth could slow in the second quarter due to weaker sales momentum in the U.S. market, and a recent fire at South Korea's LG Chem (051910.KS: Cotización) battery plant that was affecting some notebook orders.
But Leung said the impact from the battery issue had been limited, and there should be a recovery after the summer.
"Quanta's first-quarter and 2008 full-year forecasts on its laptop shipments indicate that global notebook PC demand has not been hit as hard as previously expected by the U.S. subprime crisis," said Alex Huang, assistant vice president of Mega International Securities.
He added that Intel (INTC.O: Cotización), the world's biggest maker of PC central processing chips, had said it was cautiously optimistic about the second quarter, and Acer (2353.TW: Cotización), the world's No.3 PC seller, said there was no reason to be pessimistic about the second quarter. Continuación...