Siemens acquisition pushes BenQ into loss

BenQ, the Taiwanese electronics conglomerate that recently bought Siemens’ mobile phone business has reported a Q1 loss that is directly attributed to the restructuring cost contingent on the German acquisition.

BenQ recorded a net loss of 4.99 billion Taiwanese Dollars on sales of 57.9 billion Taiwanese Dollars. Last year the company made a 300 million Taiwanese Dollar profit in the same period. The loss was higher than forecast and analysts expectations. Handset sales were also down, with some 7 million models sold as against 10 million for the same quarter a year ago.

However, market reaction to the news was muted because overall performance improved significantly over the Q1 as BenQ recorded lower operating costs and improved selling prices of handsets. The manufacturer also said that the lower Q1 figures were the result of “seasonal factors” and the phasing-out of several unprofitable and old handset models.

A company spokesman said Q2 shipments will be 30 per cent higher than Q1 and that, simultaneously, handset prices will rise by 10 per cent.

BenQ also announced that it is to raise 10 billion Taiwanese Dollars in financing through a new convertible bond and preferred shares issue.
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