Apple Inc.’s MacBook assembler Quanta Computer Inc. said its Shanghai campus recovered from Covid-related disruptions more slowly than expected, halving its profits.
Net income for the second quarter came in at NT$3.96 billion ($132 million). It has down 50% and is below the average estimate of NT$4.3 billion. Sales totaled NT$270.5 billion, compared to analysts’ average estimate of NT$258.4 billion.
Quanta has announced in April. Shanghai site halted its operations to follow the local government’s Covid restrictions. Spokeswoman Carol Hsu said the company got approval to resume operations on a closed-loop system that same month. The restart was bumpy due to logistical disruptions and worker shortages. The Shanghai unit returned to full production only at the end of June, he said.
“The significant recovery took longer than expected,” Hsu told analysts on a call about its Shanghai operation. He called the company’s results “disappointing.”
Quanta incurred significant expenses for keeping workers on campus and training new staff, he added. Shanghai’s disruptions will continue to weigh on earnings in the third quarter. The extra incentives it is paying to keep enough workers, according to Chief Financial Officer Elton Yang.
Quanta makes some Apple laptops at its Shanghai plant. In the face of prolonged government-imposed lockdowns. The site saw violent clashes and growing infections earlier this year, Bloomberg News reported.
The extent to which that delayed Apple’s shipments remains unclear. While MacBook Pro models are immediately available in the United States. There’s still a two-week wait for the updated MacBook Air, according to Apple’s official website.