Nam Tai Electronics’ CEO, Masaaki Yasukawa has tended his resignation after an 8-month tenure, due to personal reasons. Meanwhile, Nam Tai Electronics appointed NTEEP’s CEO and Chairman, Wong Kuen Ling as President and CEO (Acting).
Investment bank J.P.Morgan believes Yasukawa’s departure could affect Nam Tai’s recent efforts of further expansion with Japanese customers, the firm expects operational disruption will be minimal.
Nam Tai lost its CFO earlier this year.
A management vacuum has been left in the wake of the departures. As a result, Nam Tie Electronics no longer provides guidance and has even suspended hosting an earnings conference call which is being viewed as negative by some investment banks. Q3 sales Up 10% quarter-on-quarter as expected
Margins plunge
Nam Tai Electronics reported $160.2M and $0.11 vs. J.P.Morgan’s recently reduced estimate of $160M and $0.14. Sales were right on the money and a little below consensus of $163M.
The problem was margins, specifically gross margin, which fell from 14.2% to 9.8% quarter-on-quarter, well below the bank’s 11.15% estimate.
J.P.Morgan believes negative mix contributed to this poor showing. What’s not clear is how long margins will remain in a depressed state. J.P.Morgan is currently forecasting continued margin degradation year-on-year throughout the first-half of fiscal year 2009.
Source: J.P.Morgan
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