United Microelectronics Faces Sales Drop: February Revenues Dip Over 3%
Portfolio Pulse from Nabaparna Bhattacharya
United Microelectronics Corporation (NYSE:UMC) reported a 3.07% year-over-year decrease in February sales, totaling NT$17.45 billion. The January-February period saw a slight revenue drop of 0.15% to NT$36.464 billion, with February revenues falling 8.2% from January. UMC anticipates a 2%-3% increase in Q1 wafer shipments but expects a 5% decrease in ASP in USD. The company plans a $3.3 billion capex for 2024 and forecasts capacity utilization in the low 60% range. UMC's shares fell 1.29% to $7.64 on Tuesday.
March 06, 2024 | 11:13 am
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United Microelectronics Corporation reported a decrease in February sales and a slight drop in January-February revenues. The company anticipates a 2%-3% increase in Q1 wafer shipments but expects a 5% decrease in ASP in USD. UMC plans a $3.3 billion capex for 2024 and forecasts capacity utilization in the low 60% range.
The reported decrease in sales and revenues, along with the expected decrease in ASP in USD, could negatively impact investor sentiment in the short term. The planned capex of $3.3 billion and forecasted low capacity utilization further contribute to potential concerns about UMC's near-term financial performance.
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IMPORTANCE 90
RELEVANCE 100