TAIPEI, Taiwan, Dec. 6, 2011 /PRNewswire-Asia-FirstCall/ — Asia Pacific Wire & Cable Corporation Limited (APWC) (“APWC” or the “Company”), today announced unaudited consolidated results for the third quarter ended September 30, 2011.
The Company reported solid revenue growth in the third quarter and during the first nine months of 2011. However, the significant drop in the copper price in the third quarter of 2011 resulted in an inventory allowance, which reduced gross profit and caused an operating loss. The Company’s products and services are primarily used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region.
Third-Quarter 2011 Financial Highlights:
Revenues were $130.2 million, an increase of 13.9% from $114.3 million in the third quarter of 2010
Gross profit was $8.0 million, a decrease of 47.6% from $15.2 million in the year-ago quarter
Gross profit margin was 6.1%, compared with 13.3% in the year-ago quarter
Net loss attributable to APWC shareholders was $1.2 million, compared with net income attributable to APWC shareholders of $3.6 million in the year-ago quarter
Basic and diluted loss per share was $0.09, compared with earnings of $0.26 in the year-ago quarter
Third-Quarter 2011 Results
Revenues in the quarter ended September 30, 2011 increased 13.9% to $130.2 million from $114.3 million in the third quarter of 2010. Gross profit was $8.0 million, down 47.6% from $15.2 million in the year-ago quarter. Gross profit includes a $3.1 million write down of inventory. The gross margin decreased to 6.1%, as compared to 13.3% in the year-ago quarter. The operating loss was $0.5 million, versus operating income of $7.7 million in the year-ago quarter. Selling, general and administrative expenses were $9.8 million, an increase of 31.9% from the year-ago quarter. This was mainly due to currency losses in various countries. Net loss attributable to APWC shareholders was $1.2 million, as compared to net income attributable to APWC shareholders of $3.6 million in the year-ago quarter. Net loss per basic and diluted share was $0.09, as compared to net income per basic and diluted share of $0.26 in the year-ago.
Nine-Month 2011 Results
Revenues in the nine months ended September 30, 2011 were $400.7 million, a 23.2% increase over $325.2 million in the year-ago period. Gross profit was $37.3 million, down 8.7% from $40.8 million in the year-ago period, representing gross margins of 9.3% and 12.6%, respectively. Gross profit includes a $3.3 million write down of inventory. Operating income was $12.2 million, a decrease of 38.5% from $19.8 million in the year-ago period. SG&A expense was $26.8 million, an increase of 30.7% from $20.5 million in the year-ago period, mostly due to currency losses. Net income attributable to APWC shareholders was $3.9 million, as compared to $11.1 million in the year-ago period. Net income per basic and diluted share was $0.29, as compared to $0.80 in the year-ago period.
Financial Condition
As of September 30, 2011, APWC had $76.1 million in cash and cash equivalents and $4.2 million in unrestricted short-term bank deposits, totaling $80.3 million, as compared to cash, cash equivalents, and unrestricted short-term bank deposits of $63.2 million as of December 31, 2010. Total current assets were $339.6 million as of September 30, 2011, as compared to $329.5 million at the end of 2010, and total current liabilities were $170.4 million as of September 30, 2011, compared to $158.8 million at the end of 2010. Working capital was $169.3 million as of September 30, 2011, as compared to $170.7 million at the end of 2010. Shareholders’ equity attributable to APWC was $154.9 million, compared to $153.2 million at the end of 2010. Net book value per share increased to $11.20 from $11.08 per share at the end of 2010.
Recent Events
On October 31, 2011, the Company announced that Siam Pacific (“SP”), a subsidiary of the Company’s Charoong Thai Wire and Cable (“Charoong Thai”) in Thailand, had suspended operations temporarily due to damage sustained from the region’s recent flooding. APWC is organizing an emergency technical and support team from affiliate companies to assist restoration of machineries and equipment at SP and to maintain supply of products to SP customers during the recovery period.
Separately, as previously announced on September 30, 2011 the sale of APWC’s Subsidiary, the Shandong Pacific Fiber Optics Co. Ltd.., has been completed and approved in November by the local authorities.
About Asia Pacific Wire & Cable Corporation
Asia Pacific Wire & Cable Corporation is principally engaged in the manufacture and distribution of telecommunications (copper and fiber optic) and power cable and enameled wire products in the Asia Pacific region, primarily in Thailand, China, Singapore and Australia. The Company manufactures and distributes its own wire and cable products and also distributes wire and cable products (“Distributed Products”) manufactured by its principal shareholder, Pacific Electric Wire & Cable Company, a Taiwanese company (“PEWC”). The Company also provides project engineering services in the supply, delivery and installation (“SDI”) of power cables to certain of its customers. For more information on the Company, visit http://www.apwcc.com. Information on the Company’s Web site or any other Web site does not constitute a portion of this release.
Safe Harbor Statement
This release contains certain “forward-looking statements” relating to the Company, its business, and its subsidiary companies. These forward looking statements are often identified by the use of forward-looking terminology such as “believes”, “expects” or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
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