By Sheena Lee
SEOUL (Reuters) - Taiwan's mobile phone maker BenQ Corp. (2352.TW: Quote, Profile, Research, Stock Buzz) expects its sales to rise 17 percent this year, higher than analysts' forecasts, thanks to its bread-and-butter contract manufacturing business.
"Sometime in 2008, we should see the company in very good shape," BenQ Chairman K.Y. Lee said via video-conference at the Reuters Global Technology, Media and Telecoms Summit.
The firm is also in the process of selling the two buildings of its Taipei headquarters to raise over $120 million, as it liquidates assets for more cash to help BenQ's financial state.
Lee said sales would reach $7 billion this year, compared with $5.96 billion in 2006, and the company would return to profit at the end of this year or early next year.
The company forecast is much higher than a $4.1 billion sales estimate from 12 analysts on Reuters Estimates.
BenQ supplies to the likes of Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research, Stock Buzz) and Dell Inc. (DELL.O: Quote, Profile, Research, Stock Buzz) on its contract side, competing with Taiwan rivals like Asustek Computer Inc. (2357.TW: Quote, Profile, Research, Stock Buzz) and Hon Hai Precision Industry Co. (2317.TW: Quote, Profile, Research, Stock Buzz).
Its mobile phone business competes with brands like Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) and Motorola (MOT.N: Quote, Profile, Research, Stock Buzz).
Lee said its revenue would rise significantly in the second half of this year as the firm gains contract orders from the four largest PC brands, and as it customizes mobile phones for global operators such as Vodafone (VOD.L: Quote, Profile, Research, Stock Buzz) in Europe. Continued...
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