Yageo posted after-tax loss of NT$2 per share in 2002

Taipei, March 13, 2003 (CENS)--Yageo Corp. said yesterday that the firm suffered after-tax losses of about NT$4.6 billion in 2002, translating into a loss of NT$2 per share based on its paid-in capital of NT$22.5 billion.

As of the end of 2002, the local passive components maker was in the red of NT$17.1 billion. The firm originally estimated to post pretax profit of NT$137.5 million from its core business in the fourth quarter of 2002, but finally recorded net losses of NT$708 million due to NT$650 million in non-operating loss.

Executives at Yageo said that the price of passive components would continue declining in 2003, with that chip resistors dropping by 3% to 5% in the first quarter from the fourth quarter of 2002.

Meanwhile, the price of MLCC (multilayer ceramic capacitor) also declined by between 8% and 10% in the first quarter from the preceding quarter. It is expected that the price may decline between 6% and 9% in the second quarter.

Although the delivery of both chip resistors and MLCCs increased significantly in the fourth quarter of last year, the firm's revenue was unable to grow as expected due to the price drop. As part of efforts to ensure revenue growth, the firm expects to boost the delivery ratio for specialized products beginning in 2003.

For example, Yageo will increase the sales ratio of its high frequency components for mobile handsets. It will also debut several high capacity products such as 0805 X7R in the first half of the year.

Regarding the gross profit rate, Yageo posted an average gross profit rate of 23% in the fourth quarter of 2002. The figure dropped to 20% in the first quarter, however.