Teco Electric & Machinery : 2016/05/13 TECO Announces 1Q16 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 1Q 2016 Results

Taipei, Taiwan, May 13 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 1Q 2016.

Consolidated Basis Unit: NT$1,000

Period Item	1Q 2016	vs. 1Q 2015 (+/-%)	vs. 4Q 2015 (+/-%)
Operating Revenue	11,678,422	-0.3%	-6.4%
Gross Profit, net	3,170,551	3.7%	-0.6%
Operating Profit	1,033,366	4.7%	10.4%
Income Tax Expense	270,981	-5.7%	99.2%
Net Income(1)	683,036	-7.3%	19.7%
EPS(NT$)	0.34

1. Excluding non-controlling interests.

   Please find the details in the following pages.

   For the first quarter of 2016, net revenue totaled NT$11,678 million and gross profit was NT$3,171 million. Operating profit came in at NT$1,033 million and net income was NT$683 million. Earnings per share was reported as NT$0.34.

   Recurring operating revenue decreased by 0.5% as opposed to 1Q'15. Gross profit and operating profit increased by 3.7% and 4.7% respectively. Net income decreased by 7.3%. The decrease in non-operating income was mainly due to the decrease in "Share of profit of associates and joint ventures accounted for under the equity method" in 1Q16. (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	1Q ' 16 (3) Amount %		1Q ' 15 (3) Amount %		YoY %
   	11,678,422	100.0%	11,716,314	100.0%	-0.3%
   	11,555,122	98.9%	11,611,465	99.1%	-0.5%
   	123,300	1.1%	104,849	0.9%	17.6%
   	(8,507,576)	-72.8%	(8,665,295)	-74.0%	-1.8%
   	3,170,551 (2,137,185)	27.1% -18.3%	3,057,061 (2,070,378)	26.1% -17.7%	3.7% 3.2%
   	1,033,366	8.8%	986,683	8.4%	4.7%
   	28,390	0.2%	122,264	1.0%	-76.8%
   	181,749	1.6%	182,502	1.6%	-0.4%
   	(3,251)	0.0%	(59,340)	-0.5%	-94.5%
   	(97,501)	-0.8%	(47,709)	-0.4%	104.4%
   	(52,607)	-0.5%	46,811	0.4%	-
   	1,061,756 (270,981)	9.1% -2.3%	1,108,947 (287,384)	9.5% -2.5%	-4.3% -5.7%
   	683,036	5.8%	737,106	6.3%	-7.3%
   	0.34		0.37

   Note:

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

3. Excluding non-controlling interests.

4. Comply with IFRS.

5. Recurring operating revenue for 1Q'16 decreased 7.3% over 4Q'15. Gross profit decreased by 0.6% while operating profit increased by 10.4%. Net income increased by 19.7%. The main reason results in increasing Non- operating Income is the one off impairment loss in 4Q15.

   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	1Q ' 16 (3) 4Q ' 15 (3) Amount % %				YoY %
   	11,678,422	100.0%	12,475,214	100.0%	-6.4%
   	11,555,122	98.9%	12,466,651	99.9%	-7.3%
   	123,300	1.1%	8,563	0.1%	1339.9%
   	(8,507,576)	-72.8%	(9,288,862)	-74.5%	-8.4%
   	3,170,551 (2,137,185)	27.1% -18.3%	3,189,598 (2,253,951)	25.6% -18.1%	-0.6% -5.2%
   	1,033,366	8.8%	935,647	7.5%	10.4%
   	28,390	0.2%	(137,052)	-1.1%	-
   	181,749	1.6%	413,596	3.3%	-56.1%
   	(3,251)	0.0%	(451,184)	-3.6%	-99.3%
   	(97,501)	-0.8%	(77,482)	-0.6%	25.8%
   	(52,607)	-0.5%	(21,982)	-0.2%	139.3%
   	1,061,756 (270,981)	9.1% -2.3%	798,595 (136,066)	6.4% -1.1%	33.0% 99.2%
   	683,036	5.8%	570,782	4.6%	19.7%
   	0.34	0.28

   Note:

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

7. Excluding non-controlling interests.

8. Comply with IFRS.

Table 3

(In NT$1,000) Cash & Cash Equivalents Receivables Inventories Other Current Assets Total Current Assets Financial Assets Available for sale - Non Current Long-Term Investments Under Equity Method Other Non-Current Assets Total Non-Current Assets Total Assets Current Liabilities Bonds Payable Long-Term Borrowings Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities Total Shareholders' Equity(1)	Mar 31, 2016 13,818,921 12,317,743 11,672,242 5,322,467 43,131,373 12,023,030 3,951,407 31,585,377 47,559,814 90,691,187 22,693,357 3,000,000 4,560,146 5,042,701 12,602,847 35,296,204 55,394,983	Dec 31, 2015 14,919,042 12,366,714 11,755,227 3,251,419 42,292,402 10,905,909 5,464,797 25,771,144 42,141,850 84,434,252 22,715,038 3,000,000 2,300,299 4,986,411 10,286,710 33,001,748 51,432,504	Mar 31, 2015
			15,089,115
			11,695,759
			11,346,602
			3,276,139
			41,407,615
			12,796,759
			5,244,017
			19,666,389
			37,707,165
			79,114,780
			16,267,582
			1,513,200
			4,333,160
			4,276,025
			10,122,385
			26,389,967
			52,724,813

(1) Including non-controlling interests.

About TECO Electric & Machinery Co., Ltd.

TECO Electric & Machinery Co., Ltd. (TSE 1504) was founded in 1956 and has since been well known as one of world's leading motor-manufacturers. For 60 years and running, TECO has now engaged in various business sectors ranging from Industrial Products, Home Appliances, Mechanical and Electrical Construction, Key Components Manufacturing and Information Technology. Teco's consolidated revenue was NT$48.6 Billion for the 2015 fiscal year. More information is available at http://www.teco.com.tw

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