Walsin Lihwa Q2 performance benefited by growth in stainless steel business
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Update time : 2024-08-05 19:32:02
Walsin Lihwa reported that its second-quarter EPS surpassed both the same period last year and the first quarter of this year, with its gross profit margin rising to 8.6%.
This improvement was primarily due to increased demand and growth in the stainless steel business, as well as higher nickel prices. Additionally, the cable business saw increased sales due to the elimination of delayed shipments from the Lunar New Year period and rising copper prices.
Walsin Lihwa noted that its stainless steel business is expected to face challenges in the third quarter due to the dull season caused by summer vacations in Europe and the US, and delayed shipments from the Tainan plant due to flooding. However, the end-user demand in China's stainless steel market remains weak, leaving the third quarter outlook uncertain.
In the wire and cable business, the ongoing enhancement of Taipower's robust grid plan, coupled with increased demand for building and industrial construction, suggests a better market outlook for the second half of the year compared to the first half.
