Major Thai electronics manufacturer planning for further economic downturn
By Jon Fernquest
There
are signs of
recovery
in the electronics sector in Asia, so-called green
shoots (Read
article).
Others claim that despite a recent pick up in orders from the US and Europe, the electronic sector's recovery remains doubtful. Explains one industry expert:
"The
increase [of orders] is possibly driven
by inventory piling up on
speculation that government projects would be launched in the US
and
Europe as part of economic
stimulus packages...Actually, we have not seen consumer demand picking up."
SET-listed Delta Electronics Plc said yesterday its revenue could drop 20% this year from an estimate of US$1.1 billion due mainly to a larger-than-expected contraction of the European market.
With the shrinking revenue, Delta will continue to trim costs and improve production efficiency and productivity. The electronic-parts manufacturer has reduced factory working days and slashed its workforce by 10% from last year to about 13,000.
Delta is expected to recover in the latter half of the year but profitability would shrink due to stiff competition. Net profit is estimated at 2.2 billion baht, down 24% from 2008.
The company is planning to invest in another factory in southern India for the production of power-supply equipment and magnetic transformers. Delta aims to lift its revenue from India to $1 billion by 2013.
(Photo on right is of a transformer).
Vocabulary:
recovery - when the economy gets better (more jobs, higher incomes) การฟื้นฟูสภาพ
signs of recovery - things that happen that show an economic recovery might be happening มีทีท่าว่าเศรษฐกิจจะกระเตื้องขึ้น
green shoots - signs of economic recovery, term first used by Ben Bernanke (See Wikipedia) การฟื้นตัวของสภาพเศรษฐกิจ
a pickup in orders - an increase in orders, when orders are slow ค่อยๆ ได้รับการสั่งสินค้าเพิ่มขึ้น
recovery remains doubtful - an economic recovery is probably not happening การฟื้นตัวของเศรษฐกิจยังไม่เป็นที่แน่ชัด
driven by inventory piling up on speculation - caused by firms increasing inventory because they believe that they will need it in the future
launched - began เริ่ม
stimulus, fiscal stimulus - increasing government spending or cutting taxes to get the economy moving and growing again การกระตุ้นเศรษฐกิจ
economic stimulus package - set of government spending programmes and tax cuts to be passed by parliament as a law แผนการกระตุ้นเศรษฐกิจ
consumer demand picking up - families are starting to buy things again, starting to spend money again ความต้องการของผู้บริโภคหรือการจับจ่ายของผู้บริโภคมีมากขึ้น
larger-than-expected contraction of the European market
shrinking revenue - the money coming into the organisation, being earned by the organisation is falling มีรายรับหรือรายได้น้อยลง
trim costs - reduced costs ลดต้นทุน
efficiency - waste little time, energy and resources in doing a task (minimize time, energy and resources in performing a task) (See glossary) การทำงานอย่างมีประสิทธิภาพ คุ้มค่าเวลาและใช้พลังงานหรือต้นทุนในการผลิตน้อย เพื่อให้ได้ผลผลิตมาก
production efficiency - producing things in a factory for minimum cost การผลิตอย่างมีประสิทธิภาพ
productivity - producing more with the same amount of inputs (labour, energy, etc) การผลิตสินค้า
slashed its workforce - reduced its workforce by large numbers การลดการจ้างงาน
stiff competition - difficult, intense competition การเข่งขันที่เข้มข้น
intense - lots of activity เข้มข้น
power supply - a source of the electrical power needed to run a machine, car, or a computer (See Wikipedia) ไฟฟ้า
transformers - an device for increasing the voltage of electricity (alternating current (AC) electricity used in the home and office) (See Wikipedia and photo above) หม้อแปลง
(Source: Bangkok Post, business, 12/05/2009, Delta warns of 20% revenue decline, NAREERAT WIRIYAPONG, link)
