Teco Electric & Machinery : 2016/03/30 TECO Announces 4Q15 Results

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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 2015 Results

Taipei, Taiwan, March 30th 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 2015.

Consolidated Basis Unit: NT$1,000

Period Item	4Q 2015	vs. 4Q 2014 (+/-%)	vs. 3Q 2015 (+/-%)	2015	vs. 2014 (+/-%)
Operating Revenue	12,475,214	-0.8%	1.9%	48,598,573	-9.6%
Gross Profit, net(1)	3,189,598	2.6%	3.3%	12,400,311	-7.4%
Operating Profit	935,647	19.2%	-2.8%	3,787,627	-14.4%
Income Tax Expense	136,066	-30.6%	-59.8%	1,049,155	-19.2%
Net Income(2)	570,782	-18.1%	-40.3%	3,177,291	-21.8%
EPS(NT$)	0.28	1.60

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

2. Excluding non-controlling interests.

For the fourth quarter of 2015, net revenue totaled NT$12,475 million and gross profit was NT$3,190 million. Operating profit came in at NT$936 million and net income was NT$571 million. Earnings per share was reported as NT$0.28.

Recurring operating revenue decreased by 0.4% as opposed to 4Q'14. Gross profit and operating profit increased by 2.6% and 19.2% respectively. Net income decreased by 18.1%. The decrease in non-operating income was mainly due to the one off impair loss in 4Q15. (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	4Q ' 15 Amount %		4Q ' 14 Amount %		YoY %
	12,475,214	100.0%	12,577,496	100.0%	-0.8%
	12,466,651	99.9%	12,519,068	99.5%	-0.4%
	8,563	0.1%	58,428	0.5%	-85.3%
	(9,288,862)	-74.5%	(9,468,956)	-75.3%	-1.9%
	3,189,598 (2,253,951)	25.6% -18.1%	3,107,733 (2,322,792)	24.7% -18.5%	2.6% -3.0%
	935,647	7.5%	784,941	6.2%	19.2%
	(137,052)	-1.1%	168,061	1.3%	-181.5%
	413,596	3.3%	418,763	3.3%	-1.2%
	(451,184)	-3.6%	(152,512)	-1.2%	195.8%
	(77,482)	-0.6%	(53,520)	-0.4%	44.8%
	(21,982)	-0.2%	(44,670)	-0.4%	-50.8%
	798,595 (136,066)	6.4% -1.1%	953,002 (195,929)	7.6% -1.6%	-16.2% -30.6%
	570,782	4.6%	697,348	5.5%	-18.1%
	0.28		0.34

Note:

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

2. Excluding non-controlling interests.

Recurring operating revenue for 4Q'15 increased 1.6% over 3Q'15. Gross profit increased by 3.3% while operating profit decreased by 2.8%. Net income decreased by 40.3%. The decrease in non-operating income was mainly due to the decrease in dividend income and one off impair loss in 4Q15. (See table 2)

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	4Q ' 15 Amount %		3Q ' 15 Amount %		YoY %
	12,475,214 12,466,651 8,563 (9,288,862)	100.0% 99.9% 0.1% -74.5%	12,247,527 12,272,648 (25,121) (9,158,184)	100.0% 100.2% -0.2% -74.8%	1.9% 1.6% - 1.4%
	3,189,598 (2,253,951)	25.6% -18.1%	3,086,597 (2,124,172)	25.2% -17.3%	3.3% 6.1%
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	935,647	7.5%	962,425	7.9%	-2.8%
	(137,052)	-1.1%	412,878	3.4%	-133.2%
	413,596	3.3%	364,077	3.0%	13.6%
	(451,184)	-3.6%	24,250	0.2%	-1960.6%
	(77,482)	-0.6%	(56,025)	-0.5%	38.3%
	(21,982)	-0.2%	80,576	0.7%	-127.3%
Income before Tax	798,595	6.4%	1,375,303	11.2%	-41.9%
Income Tax Expense	(136,066)	-1.1%	(338,327)	-2.8%	-59.8%
Net Income (2)	570,782	7.8%	956,442	7.8%	-40.3%
EPS	0.28		0.48

Note:

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

2. Excluding non-controlling interests.

For 2015, operating revenue totaled NT$48,599 million and gross profit was NT$12,400 million. Operating profit came in at NT$3,787 million and net income was NT$3,177 million. Earnings per share was reported as NT$1.60.

Recurring operating revenue decreased by 9.5% as opposed to 2014. Gross profit and operating profit decreased by 7.4% and 14.4% respectively. Net income decreased by 21.8%. The decrease in non-operating income was mainly due to the one off disposal gain of property, plant and equipment in 2014. (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	2015 Amount %		2014(3) Amount %		YoY %
	48,598,573 48,504,693 93,880 (36,203,039)	100.0% 99.8% 0.2% -74.5%	53,748,466 53,622,907 125,559 (40,356,727)	100.0% 99.8% 0.2% -75.1%	-9.6% -9.5% -25.2% -10.3%
	12,400,311 (8,612,684)	25.5% -17.7%	13,391,803 (8,968,967)	24.9% -16.7%	-7.4% -4.0%
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	3,787,627	7.8%	4,422,836	8.2%	-14.4%
	775,644	1.6%	1,277,135	2.4%	-39.3%
	1,361,206	2.8%	1,185,074	2.2%	14.9%
	(511,807)	-1.1%	141,095	0.3%	-462.7%
	(227,691)	-0.5%	(229,363)	-0.4%	-0.7%
	153,936	0.3%	180,329	0.3%	-14.6%
Income before Tax	4,563,271	9.4%	5,699,971	10.6%	-19.9%
Income Tax Expense	(1,049,155)	-2.2%	(1,297,704)	-2.4%	-19.2%
Net Income (2)	3,177,291	6.5%	4,062,960	7.6%	-21.8%
EPS	1.60		2.05

Note:

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

2. Excluding non-controlling interests.