Asia Pacific Wire & Cable Corporation Announces Second Quarter 2010 Financial Results

Monday, Sep 06, 2010

Asia Pacific Wire & Cable Corporation Limited(BULLETIN BOARD: AWRCF) ("APWC" or the "Company"), todayannounced unaudited results for the second quarter ended June 30, 2010.

  Second-Quarter 2010 Highlights:

  -- Revenues increased 27.2% to $106.0 million from $83.4 million in the

     second quarter of 2009

  -- Gross profit increased 32.8% to $14.2 million from $10.7 million in

     year-ago quarter of 2009

  -- Operating income more than quintupled to $7.0 million from $1.3 million

     in the second quarter of 2009

  -- Net income attributable to APWC stockholders increased 61.8% to $3.7

     million, or $0.27 per diluted share, from $2.3 million, or $0.17 per

     diluted share, in the same period last year

  -- Shareholders' equity attributable to APWC stockholders was $134.7

     million as of June 30, 2010, compared to $127.4 million at the end of

     2009

"The strongmomentum in our business we experienced in the first quarter of 2010 continuedthrough the second quarter," said Mr. Chun Tang Yuan, Chief ExecutiveOfficer of APWC. "Demand for our products continued to remainstrong-particularly for enameled wire and power cable. During the first half ofthe year, the copper price has remained within a stable range. The majority ofour products and services are used in industrial, power and telecommunicationsinfrastructure in the growing Asia-Pacific region."

Second-Quarter 2010Results

Net revenue for thequarter ended June 30, 2010, was $106.0 million compared to $83.4 million forthe same period in 2009, an increase of 27.2%. The increase in revenue wasattributable to a near-doubling in sales of enameled wire, combined with astrong increase in sales of power cable, offset by a decline in sales oftelecommunications wire and cable.

Revenue from enameledwire for the three months ended June, 2010 was $51.1 million compared to $26.7million for the same period in 2009, an increase of 92.2%. Sales of enameledwire were strong in all geographies, benefiting from increases in tonnage andhigher copper prices. Revenue from power cable was $35.0 million compared to$25.2 million for the same period in 2009, an increase of 38.9%. Sales of powercable were strong in all major geographies: Thailand, Singapore, and Australia.Revenue from telecommunication cable was $10.0 million compared to $18.4million for the same period in 2009, a decrease of 45.6%, which was due to theloss of a major customer arising from the Company's disqualification frombidding.

Revenue from the SDI(Sales, Delivery and Installation) segment for the three months ended June 30,2010 was $5.3 million compared to $6.5 million for the same period in 2009, adecrease of 17.0% and is related to project timing. A major SDI contract inSingapore for high-voltage power cable and building wiring was completed in thesecond quarter of 2010.

Gross profit was $14.2million compared to $10.7 million for the three months ended June 30, 2009, anincrease of 32.8%. The gross margin was 13.4% compared to 12.8% for the sameperiod last year. The primarily stems from stable copper prices, in addition tostrong cost controls, including rigorous control over raw-material inventory.

The combination ofhigher revenues, gross margins, and lower operating expenses year over yeardrove a 435.9% increase in operating income. The Company recorded $2.6 millionin income taxes in the second quarter of 2010, versus a $3.2 million tax creditin the year-ago quarter. Net income per share attributable to APWC shareholderswas $3.7 million, which was a 61.8% increase over the second quarter of 2009.Net income per diluted share was $0.27, versus $0.17 per diluted share, in thesame period last year.

First-Half 2010 Results

Revenues in the firsthalf ended June 30, 2010 were $210.9 million, a 39.9% increase over theyear-ago period. Gross profit was $25.6 million in the first half of 2010,versus $20.4 million in the year-ago period, representing a gross margin of12.2% versus 13.5%, respectively. Operating income in the first half of 2010was $12.2 million, versus $4.7 million in the year-ago period. Net incomeattributable to APWC shareholders was $7.4 million versus $3.8 million in theyear-ago period. Net income per basic and diluted share was $0.54 in the firsthalf of 2010, versus $0.27 in the year-ago period.

Financial Condition

As of June 30, 2010, theCompany had $43.2 million in cash and cash equivalents, compared to $41.5million as of December 31, 2009. Total current assets were $266.0 million as ofJune 30, 2010, compared to $239.0 million at the end of 2009, and total currentliabilities were $126.5 million as of June 30, 2010, compared to $111.9 millionat the end of 2009. Working capital was $139.4 million as of June 30, 2010,versus $127.1 million at the end of 2009. Shareholders' equity was $134.7million, compared to $127.4 million at the end of 2009.

Upcoming Events

The Company will attendthe Brean Murray, Carret & Co. 2010 China Growth Conference in New York,City from November 17 - 18, 2010. Management will be available for one-on-onemeetings at the conference.

Source: APWC