(Updates with revenue in fourth paragraph.)
Oct. 27 (Bloomberg) -- Taiwan Semiconductor Manufacturing Co., the world’s largest contract manufacturer of chips, posted its biggest quarterly profit decline in two years as demand for computers and consumer electronics weakens.
Third-quarter net income fell 35.3 percent to NT$30.4 billion ($1 billion), from NT$46.9 billion a year earlier, the Hsinchu, Taiwan-based company said in a statement today. The average of 17 analyst estimates compiled by Bloomberg was for profit of NT$30.3 billion.
TSMC’s clients, including Texas Instruments Inc. and Broadcom Corp., forecast sales for this quarter that missed analyst estimates as consumers reduced purchases of electronics. The Taiwan company’s sales and profitability will decline this quarter as demand continues to weaken, according to analyst estimates.
Third-quarter sales were NT$106.5 billion, it reported Oct. 7, surpassing the NT$105.8 billion average of 20 analyst estimate and its own guidance of up to NT$104 billion.
TSMC said Sept. 9 that rush orders, which would help the company surpass its sales prediction for the third quarter, aren’t likely to continue into the fourth quarter.
The shares closed unchanged at NT$71.90 in Taipei before the announcement. The stock has added 1.3 percent this year.
--Editor: Janet Ong
To contact the reporter on this story: Tim Culpan in Taipei at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Tighe at email@example.com