Copper-clad laminate (CCL) manufacturer Iteq has reported pre-tax profits of NT$387 million (US$12.8 billion) for the third quarter of 2011, up 20.6% sequentially. The company credited the growth to lower raw material costs and depreciation of the NT dollar.

Quotes for copper foil and fiber glass fabrics were dragged down allowing expenditure on these main production materials to shrink in the third quarter, Iteq said. Recent depreciation of the NT dollar also enabled the company to enjoy exchange gains, it added.

However, Iteq said the industry actually went through a particularly weak third quarter of 2011. Despite sequential growth, Iteq's pre-tax profits for the quarter showed a 22.1% decline from a year earlier. Operating profits for third-quarter 2011 were NT$345 million, up 15% on quarter but down 33% on year.

Iteq's pre-tax profits amounted to NT$1.21 billion in the first thee quarters of 2011. The nine-month earnings translated into a pre-tax EPS of NT$4.05, compared to the NT$5.75 posted during the same period of 2010.

In other news, Iteq revealed that monthly capacity at its Taiwan plant has reduced to 300,000 square feet from 400,000 previously, due to a recent fire at the facility. The company also has capacity housed in Dongguan and Wuxi, China. Combined capacity at its facilities in China and Taiwan remains more than three million square feet a month, the company said.

Iteq is currently among the world's top-5 CCL suppliers, which also include Kingboard, Nan Ya Plastics, Panasonic Electric and Guangdong Shengyi Sci Tech.

Source:digitimes