Acer sees currency challenges<\/p>\n
SINGAPORE (Reuter): Acer Computer International Ltd said
\nyesterday the turmoil in Southeast Asian currencies would pose
\nadditional challenges for the group.<\/p>\n
\"We are not sure we can maintain revenue growth at the same
\nrate as the first half, but our growth should outstrip industry
\ngrowth,\" William Lu, Acer's chairman and chief executive officer
\ntold reporters at a news conference to announce interim results.<\/p>\n
He said Asia Pacific's information technology industry grew 14
\npercent in the first half.<\/p>\n
Acer's revenue jumped 49.4 percent to Singapore $763.6 million
\nin the first half of 1997 to June 30, while net profit rose 21
\npercent to S$17.8 million. Its performance was in line with
\nanalyst expectations.<\/p>\n
\"The foreign exchange turmoil will make the import of
\ncomputers more expensive and there will also be foreign exchange
\nrisks for the company,\" Lu said.<\/p>\n
However, Lu said he still expected strong Christmas sales in
\nSoutheast Asia.<\/p>\n
He declined to say whether Acer would be able to meet the
\nanalyst consensus forecast of S$38.6 million in net profit for
\nthe full year.<\/p>\n
He said the outlook for the second half of 1997 was strong.<\/p>\n
Lu added that Acer did undertake hedging activities for its
\nforeign exchange exposures, but it was not worth hedging in
\nThailand as it was too expensive.<\/p>\n
Thailand is one of Acer's major markets in the region and
\nposted revenue growth of 39 percent in the first half.<\/p>\n
On the growing industry trend towards direct selling, Lu said
\nAcer did not intend to go that route like Dell [DELL.O] and
\nGateway 2000 [GTW.N].<\/p>\n
\"Acer's position is to stay with channel distributors. We feel
\nit is not necessary to go direct,\" Lu said.<\/p>\n
Acer has a network of more than 10,000 dealers.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/acer-sees-currency-challenges-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }