Delta Electronics' Revenue in April Reaches a New High: Driven by Tariff Exemption Period, Year-on-Year Growth Reaches 21.6%, Optimistic Outlook for the Second Quarter

Taiwan • Business • 05/09 15:03
Delta Electronics' Revenue in April Reaches a New High: Driven by Tariff Exemption Period, Year-on-Year Growth Reaches 21.6%, Optimistic Outlook for the Second Quarter

Delta Electronics, Inc. announced on May 9, 2025, that its consolidated revenue for April reached NT$407.82 billion, marking a year-on-year increase of 21.6% and achieving the second-highest monthly record in history. Although there was a 6.1% decrease compared to March, the 90-day tariff exemption period in the United States prompted customers to advance their orders, driving revenue growth. Chairman Ping Cheng expects second-quarter revenue to surpass that of the first quarter and mentioned that the company will adapt its strategies in response to market and policy shifts.

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05/09 15:03

Delta Electronics' Revenue in April Reaches a New High: Driven by Tariff Exemption Period, Year-on-Year Growth Reaches 21.6%, Optimistic Outlook for the Second Quarter

Delta Electronics, Inc. announced on May 9, 2025, that its consolidated revenue for April reached NT$407.82 billion, marking a year-on-year increase of 21.6% and achieving the second-highest monthly record in history. Although there was a 6.1% decrease compared to March, the 90-day tariff exemption period in the United States prompted customers to advance their orders, driving revenue growth. Chairman Ping Cheng expects second-quarter revenue to surpass that of the first quarter and mentioned that the company will adapt its strategies in response to market and policy shifts.

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Tariff Exemption Period Spurs Early Shipments, Delta Electronics' April Revenue Reaches New High

In April 2025, Delta Electronics' consolidated revenue reached NT$40.782 billion, a 21.6% increase compared to the same period last year, with cumulative revenue for the first four months reaching NT$159.702 billion, a year-on-year increase of 27.9%. Although April's revenue slightly declined by 6.1% from March's NT$43.443 billion, it still marked the second-highest monthly revenue record in the company's history.

The impressive revenue performance was mainly due to the 90-day tariff exemption period implemented by the United States. To prepare for the potential reinstatement of tariff policies, U.S. customers accelerated their orders, leading to a significant shipping peak for Delta Electronics in April. The company stated that while it cannot disclose specific products and their proportions in the early shipments, the current production capacity is generally tight, and all shippable items have been actively managed.

Optimistic Outlook for Second Quarter Revenue, Company Maintains Full-Year Operational Goals

Delta Electronics Chairman and CEO Ping Cheng noted in a previous earnings call that second-quarter revenue is "quite good and will be better than the first quarter." In the first quarter, Delta Electronics' revenue was NT$118.919 billion, a year-on-year increase of 30.25%, setting a new record for quarterly revenue. Cheng emphasized that despite facing tariff and geopolitical risks, the company has the ability to allocate global production capacity and a flexible response mechanism, making short-term impacts manageable for the company.

He further stated that although the market situation for the third and fourth quarters remains unpredictable, the company will continue to observe policy and market changes and adjust its operational strategies accordingly. However, the full-year operational targets and medium- to long-term development plans remain unchanged.

Global Production Strategy Flexibly Responds to Policy Changes

In response to the uncertainty of U.S.-China trade policies, Delta Electronics continues to strengthen its global production strategy. The company currently has production bases in China, Taiwan, Thailand, India, Slovakia, the United States, and Brazil, with about 50% of manufacturing taking place in China. To reduce reliance on a single region, Delta Electronics is actively expanding its Thailand facility and planning to establish it as the second global operations center.

Despite the U.S. market accounting for more than one-third of Delta Electronics' total revenue, the company remains cautious about expanding production in the U.S. due to high local production costs. In contrast, expanding capacity in regions like Thailand and India offers more flexibility and cost-effectiveness, helping the company respond to future policy changes.

Short-Term Gains from Tariff Policy, Long-Term Impact Yet to Be Seen

Currently, the U.S. has implemented a 90-day tariff exemption on certain Chinese imports, providing a short-term respite for businesses. However, there is widespread market concern about the policy direction after the exemption period ends. If tariffs are reinstated, it could put pressure on order momentum in the second half of the year. Delta Electronics stated that it will continue to closely monitor U.S. policy developments and adjust its shipping and capacity strategies based on actual conditions.

Analysts noted that Delta Electronics possesses a comprehensive global supply chain and customer base, which is expected to maintain stable operations in the short term. The company also emphasized that although production capacity is currently tight, it will fully cooperate with customer demands to ensure stable supply.

References

People Also Ask...

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In the future, will Delta Electronics consider increasing its investment in India as part of its global production strategy?

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Delta Electronics expects its second-quarter revenue to surpass that of the first quarter. How will this affect investments?

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Is April's high revenue for Delta Electronics because of the U.S. tariff exemption period?