Finally some good news.
Perry
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Tuesday March 30, 10:51 pm Eastern Time
Taiwan Acer sees better 1999
TAIPEI, March 31 (Reuters) - Taiwan's Acer Inc said on
Wednesday its 1999 profit outlook should improve as demand for
its notebook computers surges and losses at its U.S. branch narrow.
''We should be able to see a better profit outlook in 1999, although
we have yet to make a formal forecast,'' Henry Wang, an Acer spokesman, told Reuters by telephone.
Acer's 1998 net profit was T$2.492 billion, down 33 percent from T$3.74 billion in 1997.
Acer held a closed-door briefing for institutional investors on Tuesday and some of the informal
forecasts discussed were leaked by Taipei newspapers. Wang confirmed some key aspects of the
reports, particularly those regarding the outlook.
Wang said Acer expects to turn out more than nine million computers in 1999, up from eight million
in 1998, with the steepest gains for notebook computers. In 1998, he said, it made 7.2 million desktop
computers and 800,000 notebooks.
''With demand for notebook computers rising, we expect to make 1.2-1.5 million notebook computers
in 1999,'' Wang said.
Acer will have turned out about 380,000 notebook computers in the first quarter alone, though
production in April could fall below company expectations, he said.
Production of 1.2 million notebook units would represent a 50 percent year-on-year rise.
Acer expects losses at its U.S. unit to narrow to US$20-30 million in 1999, compared to US$50
million in 1998, Wang said.
In February, Acer said it would halt sales through U.S. retail stores, once a lucrative business,
following huge losses and shift its sales focus to corporate customers.
Wang said Acer would seek to sell its family computers directly over the Internet, essentially cutting
out the retail channel -- a rising trend among U.S. manufacturers inspired by the huge success of Dell
Computer Corp (Nasdaq:DELL - news).
(US$=T$33.1) |
