TPV Technology Ltd., the world’s biggest contract maker of computer monitors, said third-quarter profit fell 19 percent as expansion in the flat-panel television market lowered margins.
Net income dropped to $32 million, or 1.33 cents a share, from $39.5 million, or 1.73 cents, a year earlier, TPV said in a statement to Hong Kong’s stock exchange today. That compares with the $31.9 million median profit estimate of three analysts surveyed by Bloomberg. Sales rose to $2.95 billion from $2.26 billion a year earlier.
TPV’s profitability came under pressure as the company sought to attract orders for the assembly of flat-panel televisions from clients including Sharp Corp. and Toshiba Corp. Lower selling prices for TVs eroded higher earnings at TPV’s monitor business, which benefitted from increased demand for personal computers by businesses.
“TPV’s margins in TVs are lower than for PC monitors,” Steven Zhang, who rates TPV shares “hold” at DBS Vickers Ltd. in Hong Kong, said before the earnings. Consumer demand for flat-panel TVs has been weaker-than-expected in some markets, such as China, Zhang said.
TPV shares fell 1.2 percent to HK$5 in Hong Kong trading before the announcement.
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