Notebook SKU builder Compal has slashed its annual shipment and spending forecast in the face of the shrinking market.
The Taiwan-based firm is the world’s second largest contract notebook builder and supplies Acer, Hewlett-Packard and Lenovo.
Compal, which has its eye on taking over larger local rival Quanta, now expects total 2009 shipments to come in at around 32 million, three million lower than previously forecast, and added that it planned to halve its spending plans by 50% this year.
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Spokesman Chang-chih Min told Bloomberg the firm wanted to control its capital outlays and maintain its “high cash” position so that it could weather the storm.
Part of its 2009 spending plans included NT$1bn for a new facility in Vietnam,which could now be shelved.
It also revealed its consolidated revenues fell 3% year-on-year to NT$427.6bn (US$12.8bn), according to reports in the local press.