Nam Tai revenue falls 26 percent, stock hit

Chinese contract electronics manufacturer Nam Tai Electronics Inc. on Monday reported a 26 percent drop in sales, saying its handset manufacturing business was suffering in a "difficult and extremely competitive" market.

The Macao-based company earned $11.8 million, or 26 cents per share, compared with $38.8 million, or 87 cents per share, in the same quarter last year.

Last year's results included a $28 million gain on the sale of securities.

Subtracting a gain on liquidation settlement, Nam Tai earned 20 cents per share in the quarter. The three analyst surveyed by Thomson Financial had expected earnings of 17 cents per share, excluding items.

Nam Tai's revenue was $146.2 million, compared with $197.8 million a year ago.

Nam Tai's U.S.-listed shares fell $1.66, or 14 percent, to $10.32 in afternoon trading.

Nam Tai assembles electronics for other companies, who sell them under their own brand.

Nam Tai's handset segment saw its sales fall by 48 percent from last year due to declining demand and pricing pressure, it said. It expects the situation to continue.

Sales of LCD panels fell 6.1 percent, and sales in the consumer electronics segment, which makes cell-phone accessories among other things, fell 3.1 percent.