Foreign currency exchange setbacks lead to a decrease in Walsin Lihwa's profits
Walsin Lihwa Corporation, a Taiwanese company specialising in electrical wires and cables, iron and steel products, and semi-finished steel products, has released its Q2 2025 financial report. However, specific figures for changes in net profit, earnings per share (EPS), and revenue from stainless steel, cables, nickel, and copper wire are not yet detailed in the available sources.
Despite the lack of detailed financial data, the company did report a net profit of NT$488 million for the last quarter, marking a 24.59% decrease from the previous quarter. This decline in net profit represents an annual decline of 78.78%, with EPS dropping from NT$0.54 a year earlier to NT$0.12 in the first quarter and NT$0.17 in the second quarter.
The company's financial performance was affected by a non-operating loss of NT$100 million due to NT$10.7 billion in foreign exchange losses last quarter. The gross margin also took a hit, falling to 7.3% from 8.2% in the previous quarter and 8.5% a year earlier.
In terms of business segments, stainless steel was the biggest revenue contributor last quarter, accounting for 52% of total revenue. Stainless steel shipments were little changed from the previous quarter and a year earlier. Shipments of nickel pig iron and nickel matte, on the other hand, rose quarter-on-quarter due to fewer deferred shipments.
The construction of a plant to make submarine cables remains on schedule and is expected to be completed by the end of this year. The plant will undergo a year-long verification phase next year before starting shipments in 2027. Cable shipments this quarter are expected to be similar to last quarter's level, supported by the grid resilience plan and ongoing private construction projects.
Despite Beijing ordering domestic manufacturers to cut steel output, sales from Chinese manufacturers are expected to remain weak this quarter. Similarly, steel sales in Europe are also predicted to remain sluggish this quarter due to seasonal weakness. The company expects stainless steel sales this quarter to be flat on a quarterly basis.
The company has given a cautious outlook for its nickel business due to geopolitical uncertainties in Indonesia linked to mining policy and oversupply. On a positive note, copper wire revenue increased NT$6 billion last quarter due to slight shipment increases from the first quarter. Local steel prices should remain stable this quarter due to the uncertainty about US tariffs being almost over and nickel prices having hit rock bottom.
For the most accurate and detailed information, investors are advised to check Walsin Lihwa Corporation’s official quarterly earnings report or investor relations website directly. The company's cautious outlook and ongoing projects, such as the submarine cable plant, indicate a focus on long-term growth and resilience in the face of market challenges.
- Despite the decrease in net profit, the company's financial report for Q2 2025, released by Walsin Lihwa Corporation, reveals that their business segments are diverse, with stainless steel being the largest contributor to their revenue.
- The construction of a plant for making submarine cables is one of Walsin Lihwa Corporation's ongoing projects, expected to be completed by the end of this year, indicating a focus on long-term growth and resilience in the industry and finance sectors.
