Taiwan's Pegatron Q3 profit slightly lags forecasts

Reuters

TAIPEI, Nov 11 (Reuters) - Apple Inc assemblerPegatron Corp reported a lower-than-expectedthird-quarter net profit of T$2.48 billion ($84.29 million) onMonday as order cutbacks for the cheaper iPhone 5C took a biteout of the Taipei-based contract manufacturer's bottom line.

The results for Pegatron, which also produces laptops forLenovo Group Ltd and former parent company AsustekComputer Inc, compared to analyst forecasts of T$2.55billion, according to Reuters SmartEstimates.

The figure also compares to a net profit of T$1.39 billionin the previous quarter and T$1.35 billion in the same quarter ayear ago.

The company's stock hit an all-time high in May on reportsthat it was snatching more orders from longtime Apple supplierHon Hai Precision Industry Co Ltd but has since sunkby a quarter. Over the summer, the company was hit byaccusations of labor abuse by the China Labor Watch, a rightsgroup.

Since then, reports of less-than-stellar sales of the iPhone5C had made industry-watchers wary of the company's prospectsgoing into the last few months of the year.

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