Continued strong sales in China and in Asia's emerging markets helped WPG Holdings secure a place among the top distributors in 2007. Delivering on a promise to align business operations more closely with the financial metrics commonly used in the United States, the Taiwan-based company--which comprises World Peace Industrial Group, SAC Group and RichPower Group--reported year-over-year gains in key areas. Operating margins improved 40 basis points, to 2.8 percent, while the operating cash cycle improved by 10 days, to 61 days. Days of inventory turnover fell to 37 days, compared with 44 days in 2006.

Pricing pressures ate into WPG Holdings' margins during 2007: Gross profit margin declined to 5.93 percent from 6.1 percent in 2006. Operating margin rose to 2.9 percent from 2.4 percent, however, as the company cut operating expenses as a percentage of sales to 3.2 percent from 3.7 percent.

Steady growth in the computer, consumer and communications segments boosted revenue, with the Chinese market accounting for the bulk of sales. In January, WPG was certified as a Reliable Electronics Components Supplier by China's Ministry of Information Industry.