Taiwanese display manufacturer Coretronic posted a sharp quarterly profit recovery while cautioning that trade policy uncertainty continues to shadow its outlook.
The Hsinchu-based company reported second-quarter consolidated revenue of NT$9.86 billion ($337.7 million), rising 16% from the previous quarter though falling 1% year-over-year. Net income attributable to shareholders jumped 199% sequentially to NT$57 million ($2.0 million), though the figure remained 80% below prior-year levels.
The results come as Taiwan grapples with US tariff policies that initially targeted the island with 32% levies before being reduced to 10% under a temporary reprieve. Coretronic executives acknowledged that tariff uncertainty is prompting supply chain adjustments and inventory management changes across the electronics sector.
The company’s drone operations showed dramatic expansion, growing from roughly 1% of first-quarter revenue to 7% in the second quarter. This surge coincides with Taiwan’s military launching an ambitious procurement drive for 48,750 commercial-grade drones through 2027, a 16-fold increase from previous orders.
For the third quarter, Coretronic projects significant growth in television applications while expecting LCD monitor shipments from its Vietnam facility to increase 30-40% as production efficiency improves. However, laptop product shipments face continued pressure from evolving trade policies.
The company’s first-half performance reflected ongoing challenges, with revenue declining 4% to NT$18.33 billion ($628.1 million) and profits dropping 82% year-over-year.
