Teco Electric & Machinery : 2017/05/15 TECO Announces 1Q17 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 1Q 2017 Results

Taipei, Taiwan, May 15 2017 - 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 2017.

Consolidated Basis Unit: NT$1,000

Period Item	1Q 2017	vs. 1Q 2016 (+/-%)	vs. 4Q 2016 (+/-%)
Operating Revenue	11,916,183	2.0%	-11.3%
Gross Profit, net	2,991,296	-5.7%	-12.1%
Operating Profit	898,656	-13.0%	-18.3%
Income Tax Expense	208,872	-22.9%	-4.2%
Net Income(1)	535,809	-21.6%	-38.0%
EPS(NT$)	0.27

1. Excluding non-controlling interests.

   Please find the details in the following pages.

   For the first quarter of 2016, net revenue totaled NT$11,916 million and gross profit was NT$2,991 million. Operating profit came in at NT$899 million and net income was NT$536 million. Earnings per share was reported as NT$0.27.

   Recurring operating revenue increased by 1.9% as opposed to 1Q'16. Gross profit and operating profit decreased by 5.7% and 13.0% respectively. Net income decreased by 21.6%. The decrease in non-operating income was mainly due to the decrease in "Gain on disposal of investments" and increase in "Net currency exchange loss."

   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 ' 17 (3) Amount %		1Q ' 16 (3) Amount %		YoY %
   	11,916,183	100.0%	11,678,422	100.0%	2.0%
   	11,775,785	98.8%	11,555,122	98.9%	1.9%
   	140,398	1.2%	123,300	1.1%	13.9%
   	(8,923,535)	-74.9%	(8,507,576)	-72.8%	4.9%
   	2,991,296 (2,092,640)	25.1% -17.6%	3,170,551 (2,137,185)	27.1% -18.3%	-5.7% -2.1%
   	898,656	7.5%	1,033,366	8.8%	-13.0%
   	(54,747)	-0.5%	28,390	0.2%	-292.8%
   	132,905	1.1%	181,749	1.6%	-26.9%
   	(138,442)	-1.2%	(3,251)	0.0%	4158.4%
   	(63,606)	-0.5%	(97,501)	-0.8%	-34.8%
   	14,396	0.1%	(52,607)	-0.5%	-
   	843,909 (208,872)	7.1% -1.8%	1,061,756 (270,981)	9.1% -2.3%	-20.5% -22.9%
   	535,809	4.5%	683,036	5.8%	-21.6%
   	0.27		0.34

   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'17 decreased 12.2% over 4Q'16. Gross profit decreased by 12.1% while operating profit decreased by 18.3%. Net income decreased by 38.0%. The decrease in non-operating income was mainly due to the decrease in "Gain on disposal of investments" and increase in "Net currency exchange loss."

   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 ' 17 (3) 4Q ' 16 (3) Amount % %				YoY %
   	11,916,183	100.0%	13,427,629	100.0%	-11.3%
   	11,775,785	98.8%	13,418,042	99.9%	-12.2%
   	140,398	1.2%	9,587	0.1%	1364.5%
   	(8,923,535)	-74.9%	(10,023,310)	-74.6%	-11.0%
   	2,991,296 (2,092,640)	25.1% -17.6%	3,404,233 (2,303,983)	25.4% -17.2%	-12.1% -9.2%
   	898,656	7.5%	1,100,250	8.2%	-18.3%
   	(54,747)	-0.5%	154,282	1.1%	-135.5%
   	132,905	1.1%	158,159	1.2%	-16.0%
   	(138,442)	-1.2%	144,829	1.1%	-195.6%
   	(63,606)	-0.5%	(42,815)	-0.3%	48.6%
   	14,396	0.1%	(105,891)	-0.8%	-
   	843,909 (208,872)	7.1% -2.3%	1,254,532 (218,109)	9.3% -1.6%	-32.7% -4.2%
   	535,809	5.8%	864,695	6.4%	-38.0%
   	0.27	0.44

   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 14,658,514 12,277,618 11,261,754 5,698,783 43,896,669 12,554,658 3,909,226 30,853,398 47,317,282 91,213,951 17,507,668 3,000,000 9,414,143 5,070,785 17,484,928 34,992,596 56,221,355	Dec 31, 2016 13,989,826 13,859,458 11,177,041 6,269,985 45,296,310 11,743,617 3,871,299 31,462,730 47,077,646 92,373,956 18,958,845 3,000,000 9,428,570 5,261,998 17,690,568 36,649,413 55,724,543	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

(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$49.9 Billion for the 2016 fiscal year. More information is available at http://www.teco.com.tw

Investor Relations Contact PR Contact

Shelly Chen Lily Chiang

Investor Relations Public Relations Manager

Phone : [phone] Ext. 3302 Phone : [phone] Ext. 3579

Fax : [phone] Fax : [phone]

Email : [e-mail] Email : [e-mail]