TSMC Q1 profits seen defying seasonal slump
(adds expected time for results announcement, para 4)
TAIPEI, April 25 (Reuters) - Analysts expect first quarter profits at TSMC (NYSE:TSM - news), the world's largest contract chipmaker, to rise 23 percent from the fourth quarter, bucking a seasonal slump as orders flood in from every segment of the chip industry.
Taiwan Semiconductor Manufacturing Co (TSMC) has already squarely met its own guidance that first-quarter revenues would improve five to 10 percent from the final three months of 2001, posting an eight percent rise to T$35.79 billion.
Profits could confirm the that trend. Taiwan's most valuable company is expected to announce a third consecutive rise in quarterly profits for the January-March period, with a Reuters survey of six analysts estimating an average of T$0.32 per share, up from T$0.26 in the final 2001 quarter.
The company is scheduled to announce the results sometime after close of Taiwan trade at 0530 GMT on Thursday, and hold an investor conference to offer guidance on the coming quarters on May 9.
By 0122 GMT, TSMC shares were down 2.11 percent at T$93.00, while the benchmark TAIEX (^TWII - news) share index was off 0.56 percent.
Though the estimate is down from year-ago earnings per share of T$0.50, it is a sign that its recovery hasn't fizzled after rebounding from a bottom in mid-2001, even though electronics sales usually cool in first quarter after a year-end boom fueled by Christmas shopping.
TSMC as the world's largest foundry takes outsourcing orders for all types of semiconductors, with clients ranging from designers of chips used in personal computers, telecom networks and consumer electronic devices.
The company's shares have surged more than 115 percent since their post-September 11 low, closing at T$95 on Wednesday.
For TSMC, ``the turnaround started to pick up steam in Chinese New Year or thereafter,'' said ABN-AMRO analyst Patrick Yau, referring to the holiday in mid-February. ``It was as if people started putting new designs and started to address the marketplace again.''
TSMC has a considerably more upbeat view of the year than the rest of the industry. Company chairman Morris Chang has forecast 20-30 percent sales growth in 2002, and for sales to increase every quarter.
By comparison, Intel Corp (NasdaqNM:INTC - news), the world's largest chipmaker, warned the market second-quarter revenues could come within a wide range, with the midpoint roughly flat with the first quarter's US$6.78 billion. It also cut 2002 capital expenditure to US$5.5 billion from US$7.3 in 2001.
TSMC's nearest rival, United Microelectronics Corp (UMC) (2303.TW) (NYSE:UMC - news) is scheduled to report January-March earnings on April 29. It is expected to say losses slimmed down from the fourth quarter.
(US$1 = T$35) |
