Taipei, Oct. 15, 2008 (CENS)--Driven by the global carbon-reduction fever, the top-two assembled-bicycle makers in Taiwan, Giant Manufacturing Co., Ltd. and Merida Industry Co., Ltd., are expected achieve record earnings this year.

With excellent response for 2009 models, both Giant and Merida`s production lines are running at full-capacity, and will continue to mid-2009. Some requirements for earlier deliveries are expected to compensate for the decreasing shipments in Taiwan.

Institutional investors estimated that Merida`s fourth-quarter operation is expected to remain robust as in the third quarter and the company is expected to generate net earnings per share (EPS) of NT$6.22 (US$0.19 at US$1: NT$32) this year. Giant, the largest bike maker in Taiwan, is expected to distribute net EPS of NT$48.31 (US$0.26), they said.

Industry sources said that the global bicycling fever has been good to the industry, which is booming contrary to the sluggish global economy.

The third quarter is usually an off season for bicycle exports in Taiwan, industry sources said, but the global bicycling fever drove up foreign orders, which have helped both Giant and Merida to set record monthly revenues in August, including NT$1.67 billion (US$52.19 million) and NT$1.28 billion (US$39.94 million), respectively.

Merida pointed out that its third-quarter shipments are expected to hit 260,000 units, up 40% from the same period of last year, while the average selling prices (ASP) is about US$500.

To meet the strong demand, both Giant and Merida have scheduled overtime work, even into weekends, as well as hire temporary workers. Giant has installed a new production line at its Taiwan plant, which is to come online in November.

(by Quincy Liang)