Thai Delta 2007 net profit up 61 pct, beats forecast

BANGKOK, Feb 19 (Reuters) - Thailand's Delta Electronics (Thailand) said on Tuesday its 2007 net earnings rose 61 percent, slightly higher than expected, due to stronger sales of high-margin power supplies for the telecoms industry.

Delta, the country's largest listed electronics firm, posted a 2007 net profit of 3.16 billion baht ($97 million), or 2.53 baht per share, up from 1.96 billion baht in 2006.

Five analysts polled by Reuters Estimates had forecast an average net profit of 3.12 billion baht. Delta was expected to post an eight percent rise in 2008 net profit to 3.37 billion baht.

After the announcement, Delta shares, valued $900 million on the Thai bourse, were up 1.3 percent at 23.10 baht, while the main Thai index .SETI was up 0.82 percent.

Sales in 2007 fell 22.5 percent to 33.8 billion baht ($975 million) due to a stronger baht and the company's decision to cease production of LCD TVs and monitors in late 2006.

The firm has focused on high-margin power supplies used for telecoms and power systems, which pushed gross profit margins to 22.3 percent in 2007 from 18.6 percent in 2006.

Costs dropped to 77.7 percent of sales in 2007 from 81.4 percent in 2006, the firm said.

Delta is 29-percent owned by Taiwan-based Delta Electronics Inc (2308.TW: Quote, Profile, Research, Stock Buzz), the world's largest producer of power supplies equipments used in computers and telecoms products. Its main customers include Dell Computer (DELL.O: Quote, Profile, Research, Stock Buzz) and Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz).

Its main rivals are electronics parts makers in China. ($1 = 32.53 Baht) (Reporting by Khettiya Jittapong, editing by Darren Schuettler) ((Khettiya.jittapong@reuters.com; +662 648 9728; Reuters Messaging:khettiya.jittapong.reuters.com@reuters.net))