Acer delivers Q3 profits and bullish outlook


Acer delivers Q3 profits and bullish outlook

Microscope contributor

Acer delivered a profit in the third quarter and gave retailers reason to cheer if its bullish forecasts for the final trading period of 2008 are to be believed.

During the three months to 30 September, the largest PC marker in EMEA saw a surge in revenues of 31% to $3.8bn (£2.3bn) while profit after tax (PAT) rose 4% to $91m (£57.5m).

For the nine months of 2008, turnover climbed 31% to $12.8bn (£8bn) but PAT fell 15% to $278m (£175.7m).

According to report from the Far East, Acer chairman JT Wang said its non-operating expenses rose to NT$503m (£9.8m) on the back of foreign exchange fluctuations and massive lay-offs at its Gateway and Packard Bell business.

At a quarterly briefing for investors, he said Acer expected shipments to be strong in the fourth quarter. “Our shipments this year should be higher than 30m PCs in total, of which 5 to 6 million units will be netbook PCs.

Jeremy Davies, senior partner at channel analysts Context, said Acer had been juggling the integration of acquisitions Gateway and Packard Bell and traversing through tough market conditions.

“The fact it hasn’t made a loss is an achievement but let’s see happens next year as the channel strategy and the new branding unfolds,” he told Microscope.

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