April 30 (Bloomberg) -- Compal Electronics Inc., the world’s second-largest contract maker of notebooks, posted its seventh consecutive decline in profit, missing estimates, as demand for computers slows globally.
First-quarter net income dropped 47 percent to NT$1.87 billion ($63 million) from NT$3.5 billion a year earlier, the Taipei-based company said in a statement. The average of 10 analysts estimates compiled by Bloomberg was for profit of NT$2.28 billion.
Competition from Apple Inc.’s iPad and more-powerful smartphones have prompted consumers to spend less on computers, resulting in global shipment growth slowing to 0.5 percent last year from the 14 percent pace in the previous 12-month period. New models, including high-end ultrabooks, and a new processor from Intel Corp. may help revenue climb this quarter.
Consolidated revenue fell 5.7 percent from a year earlier to NT$161.3 billion. That figure will rise to NT$183.4 billion this quarter with net income of NT$3.1 billion, according to estimates compiled by Bloomberg.
Compal shares added 1.5 percent to close at NT$33.6 today in Taipei before the announcement. The stock has climbed 11 percent this year, compared with a 6.1 percent advance in the benchmark Taiex index.
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