Taiwan-based green energy firm Delta Electronics noted that sales growth in 2013 will come from passive components, industrial automation processes and cloud computing services. The firm optimistically predicts annual sales growth to exceed 15% in 2013.
According to Bruce CH Cheng, company founder, it is unlikely Delta will excel in the solar industry in 2013, but sales of other products such as industrial automation processes and power supply components will have more room to grow.
Cheng believes the economy in 2013 is likely to be better than in 2012.
Due to automation expansion, Delta plans to reduce its workforce by 10% annually in China while increasing employee productivity by 15-20%.
Market observers believe the firm will increase emphasis on high-gross margin product lines to strive for profit growth. In addition, the firm is less likely to be affected by its solar business unit as DelSolar merges with Neo Solar Power (NSP). Hence, market observers believe Delta will see rising revenues in 2013.
Delta is currently in a transition from an OEM/ODM firm to developing in-house branding. The firm is moving towards becoming a solution provider.
At a previous investors conference, Delta stated fourth-quarter 2012 revenues are likely to show a sequential decrease but gross margin remains healthy.
