Delta sees improving gross margin in 3Q08 and beyond

Delta Electronics expects its gross margin to improve on-quarter starting the third quarter of this year after seeing its gross market decline five percentage points to a low of 17% in the second quarter from a year earlier, according to company CEO Yancey Hai.

Increasing shipments of power supply products for notebooks and LCD TVs should help boost revenues as well as gross margin starting the third quarter and beyond, Hai added.

For the first half of this year, gross margin stood at 17.7% compared to 21.8% a year earlier After-tax profits declined 20.2% on year to NT$5.43 billion (US$173.5 million), according to company data.