China's SMIC reports Q2 profit on higher sales

China's SMIC reports Q2 profit on higher sales

Semiconductor Manufacturing International (SMIC), China's largest chip maker, reported a net income of US$34.2 million on sharply higher sales during the second quarter.

The company's sales during the quarter totalled US$221 million, an increase of 194 per cent compared with the same period last year, it said. SMIC posted a net loss of US$30.5 million on sales of US$75.2 million during the second quarter of 2003.

SMIC's chip plants ran at near full capacity during the second quarter, reaching a capacity utilization rate of 99 per cent, the company said. A 15.6 per cent increase in wafer shipments and a 2.6 per cent increase in its average selling price (ASP) helped to boost its net income 24.5 per cent compared with the previous quarter, it said. SMIC reported net income of US$27.5 million on sales of US$187 million, during the first quarter.

SMIC also reported that it earned a growing percentage of its second-quarter sales from customers in North America. North American customers accounted for 44 per cent of sales during the second quarter, more than any other region, SMIC said.

During the same period last year North American customers accounted for 39.6 per cent of sales, making that region the second largest source of sales behind Asia-Pacific, excluding Japan, which accounted for 54.6 per cent of sales, SMIC said. Asia-Pacific companies accounted for 26.5 per cent of sales during the most recent quarter, it said.

Looking ahead to the third quarter, SMIC expects to see wafer shipments increase by between 23 per cent to 27 per cent while capacity utilization remains close to 100 per cent and ASP stays flat. The company's capital expenditure forecast for 2004 remained unchanged at $1.95 billion.

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