Nam Tai Electronics reports quarterly profit rise

The contract manufacturer Nam Tai Eelectronics Inc., producing components for consumer electronics products, has announced the rise of its quarterly profit. The company is domiciled in the British Virgin Islands but conducts its business from a headquarters on the Chinese territory of Macau.

Higher profits of the BVI company are boosted by solid margins and benefit from the sale of securities. The second quarter net income of BVI incorporated Nam Tai Electronics made $38.8 million, or 87 cents a share, compared to $18.5 million, or 42 cents a share, in the same period of 2006.

Excluding a one-time gain of more than $43 million from the sale of marketable securities, company’s profit was 26 cents a share, down if compared to 46 cents in 2006, but higher than average prognosis of analysts that made just 19 cents a share. Shares of Nam Tai rose more than 5% on the New York Stock Exchange.

Nam Tai reported the decline in business from telecommunication components assembly. The company said in its statement , “This product segment is dependent on demand in the mobile phone market, and one of our indirect customers suffered a substantial drop in sales volume in its mobile devices business in Asia and Europe.” Despite of this fact, the company reported the 11.5% increase of gross profit margin in the second quarter of 2007.

Nam Tai shares are traded at $12.75, up 54 cents or about 4.4%.

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