Teco Electric & Machinery : 2016/11/14 TECO announces 3Q16 Results

TECO Electric & Machinery Co., Ltd.

5F, 19-9, San Chong Road, Nan-Kang, Taipei 115, Taiwan

Tel: [phone] | Fax: [phone] | http://www.teco.com.tw

TECO Announces 3Q 2016 Results

Taipei, Taiwan, November 14 2016 - TECO Electric and Machinery Co., Ltd., a leading manufacturer and service provider of motors, home appliances and information technology, today announced its financial results for 3Q 2016.

Consolidated Basis Unit: NT$1,000

Period Item	3Q 2016	vs. 3Q 2015 (+/-%)	vs. 2Q 2016 (+/-%)	9M 2016	vs. 9M 2015 (+/-%)
Operating Revenue	12,003,706	-2.0%	-6.3%	36,496,207	1.0%
Gross Profit, net	3,105,913	0.6%	-10.1%	9,730,162	5.6%
Operating Profit	869,750	-9.6%	-26.7%	3,089,231	8.3%
Income Tax Expense	143,201	-57.7%	-45.8%	678,184	-25.7%
Net Income(1)	898,910	-6.0%	-13.1%	2,616,785	0.4%
EPS(NT$)	0.45	1.32

1. Excluding non-controlling interests.

   Please find the details in the following pages.

   For the third quarter of 2016, net revenue totaled NT$12,003 million and gross profit was NT$3,106 million. Operating profit came in at NT$870 million and net income was NT$899 million. Earnings per share was reported as NT$0.45.

   Recurring operating revenue decreased by 2.3% as opposed to 3Q'16. Gross profit increased by 0.6%. Operating profit and net income decreased by 9.6% and 6.0% respectively. The decrease in non-operating income was mainly due to the increase in Net Currency Exchange Loss under Other Gains and Losses in 3Q16. (See table 1)

   Table 1

   (In NT$1,000, except EPS) Operating Revenue Recurring Operating Revenue Gain on Sales of Financial Assets Operating Costs Gross Profit, net (1) Operating expenses Operating Profit Non-operating Income (Expense) Other Income Other Gains and Losses Financial Costs Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method Income before Tax Income Tax Expense Net Income (2) EPS	3Q ' 16 (3) Amount %		3Q ' 15 (3) Amount %		YoY %
   	12,003,706	100.0%	12,247,527	100.0%	-2.0%
   	11,989,789	99.9%	12,272,648	100.2%	-2.3%
   	13,917	0.1%	(25,121)	-0.2%	-155.4%
   	(8,897,433)	-74.1%	(9,158,184)	-74.8%	-2.8%
   	3,105,913 (2,236,163)	25.9% -18.6%	3,086,597 (2,124,172)	25.2% -17.3%	0.6% 5.3%
   	869,750	7.2%	962,425	7.9%	-9.6%
   	298,101	2.5%	412,878	3.4%	-27.8%
   	531,234	4.4%	364,077	3.0%	45.9%
   	(140,789)	-1.2%	24,250	0.2%	-680.6%
   	(76,109)	-0.6%	(56,025)	-0.5%	35.8%
   	(16,235)	-0.1%	80,576	0.7%	-120.1%
   	1,167,851 (143,201)	9.7% -1.2%	1,375,303 (338,327)	11.2% -2.8%	-15.1% -57.7%
   	898,910	7.5%	956,442	7.8%	-6.0%
   	0.45		0.48

   Note:

2. Unrealized / realized gain on inter-affiliate accounts included.

3. Excluding non-controlling interests.

4. Comply with IFRS.

5. Recurring operating revenue for 3Q'16 decreased 6.3% over 2Q'16. Gross profit decreased by 10.1% while operating profit and net income decreased by 26.7% and 13.1% respectively. The main reason results in increasing Non-operating Income is the dividend income in 3Q16.

   Table 2

   (In NT$1,000, except EPS) Operating Revenue Recurring Operating Revenue Gain on Sales of Financial Assets Operating Costs Gross Profit, net (1) Operating expenses Operating Profit Non-operating Income (Expense) Other Income Other Gains and Losses Financial Costs Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method Income before Tax Income Tax Expense Net Income (2) EPS	3Q ' 16 (3) 2Q ' 16 (3) Amount % %				YoY %
   	12,003,706	100.0%	12,814,079	100.0%	-6.3%
   	11,989,789	99.9%	12,789,692	99.8%	-6.3%
   	13,917	0.1%	24,387	0.2%	-42.9%
   	(8,897,433)	-74.1%	(9,359,985)	-73.0%	-4.9%
   	3,105,913 (2,236,163)	25.9% -18.6%	3,453,698 (2,267,583)	27.0% -17.7%	-10.1% -1.4%
   	869,750	7.2%	1,186,115	9.3%	-26.7%
   	298,101	2.5%	263,037	2.1%	13.3%
   	531,234	4.4%	288,864	2.3%	83.9%
   	(140,789)	-1.2%	(44,494)	-0.3%	216.4%
   	(76,109)	-0.6%	(65,806)	-0.5%	15.7%
   	(16,235)	-0.1%	84,473	0.7%	-119.2%
   	1,167,851 (143,201)	9.7% -1.2%	1,449,152 (264,002)	11.3% -2.1%	-19.4% -45.8%
   	898,910	7.5%	1,034,839	8.1%	-13.1%
   	0.45	0.52

   Note:

6. Unrealized / realized gain on inter-affiliate accounts included.

7. Excluding non-controlling interests.

8. Comply with IFRS.

For the first nine months of 2016, operating revenue totaled NT$36,496 million and gross profit was NT$9,730 million. Operating profit came in at NT$3,089 million and net income was NT$2,617 million. Earnings per share was reported as NT$1.32.

Recurring operating revenue increased by 0.8% as opposed to 9M'15. Gross profit and operating profit increased by 5.6% and 8.3% respectively. Net income increased by 0.4%. The decrease in non-operating income was mainly due to the increase in Net Currency Exchange Loss under Other Gains and Losses. (See table 3)

Table 3

(In NT$1,000, except EPS) Operating Revenue Recurring Operating Revenue Gain on Sales of Financial Assets Operating Costs Gross Profit, net (1) Operating expenses	9M ' 16 (3) Amount %		9M ' 15 (3) Amount %		YoY %
	36,496,207 36,334,603 161,604 (26,764,994)	100.0% 99.6% 0.4% -73.3%	36,123,359 36,038,042 85,317 (26,914,177)	100.0% 99.8% 0.2% -74.5%	1.0% 0.8% 89.4% -0.6%
	9,730,162 (6,640,931)	26.7% -18.2%	9,210,713 (6,358,733)	25.5% -17.6%	5.6% 4.4%
Operating Profit Non-operating Income (Expense) Other Income Other Gains and Losses Financial Costs Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method	3,089,231	8.5%	2,851,980	7.9%	8.3%
	589,528	1.6%	912,696	2.5%	-35.4%
	1,001,847	2.7%	947,610	2.6%	5.7%
	(188,534)	-0.5%	(60,623)	-0.2%	211.0%
	(239,416)	-0.7%	(150,209)	-0.4%	59.4%
	15,631	0.0%	175,918	0.5%	-91.1%
Income before Tax	3,678,759	10.1%	3,764,676	10.4%	-2.3%
Income Tax Expense	(678,184)	-1.9%	(913,089)	-2.5%	-25.7%
Net Income (2)	2,616,785	7.2%	2,606,509	7.2%	0.4%
EPS	1.32		1.32

Note:

1. Unrealized / realized gain on inter-affiliate accounts included.

2. Excluding non-controlling interests.

3. Comply with IFRS.