Nam Tai sees Q1 2006 guidance ahead
Apr 17, 2006
Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE: NTE) is pleased to announce that it is confident that it will meet its Q1 2006 guidance.
The Company's guidance for Q1 2006 remains unchanged even though its Hong Kong-listed subsidiary, Nam Tai Electronic & Electrical Products Limited ("NTEEP"), issued a profit warning for the three months ended 31 March 2006 today. Despite the poor performance of NTEEP, Nam Tai is still confident that it will be able to meet its Q1 2006 guidance.
Nam Tai currently holds 69.50% of the issued share capital of NTEEP. In Q4 2005, NTEEP accounted for less than 20% of both Nam Tai's sales and net profit, respectively. As a result, NTEEP's results are not expected to have any significant impact on the sales and profitability of Nam Tai's Q1 2006 results after Nam Tai has taken account of NTEEP's disappointing performance. Furthermore, NTEEP's situation had been taken into consideration when Nam Tai provided its projection for its Q1 2006 outlook.