Taiwan's Machine Tool Makers See Profit Growth in First 3 Quarters Despite Disadvantages
2013/12/16 | By Ken LiuMost of Taiwan's machine-tool makers made encouraging profits in the first third quarters of 2013 in spite of several disadvantageous developments, including the recent revaluation of the New Taiwan dollar against the U.S. dollar that has made Taiwan's exports less competitive against Japanese and South Korean manufacturers.
Hiwin Technology Corp., a major manufacturer of ballscrews for machine tools and automated equipment, earned NT$5.01 per share in the first three quarters of the year.
Goodway Machine Corp. made NT$2.79 per share in the first three quarters although it lost around NT$22 million (US$733,333) in foreign exchange in the third quarter alone. Migrating to high value added machines is the key to lucrative profit at Goodway and its subsidiary, AWEA Mechantronic Co., Ltd., according to company chairman, D.H. Yang.
Regardless of foreign exchange loss of around NT$10 million (US$333,333) in the third quarter, AWEA's gross margin rose to 22% in the quarter thanks to reduction in raw materials cost. In the first three quarters, the company made NT$1.69 per share.
Tongtai Machine & Tool Co., Ltd. netted NT$0.99 per share in the first three quarters, improving from NT$0.98 it had in the same period of 2012. Company executives attributed the increase mostly to the company's gain in foreign exchange in the first half of 2013 and migration to high-margin machines used in automobile and aircraft industries. They said R&D spending had accounted for 3%, or NT$200 million (US$6.6 million), of the company's annual revenue.
Taiwan Takisawa Co., Ltd. saw its EPS for the first three quarters surge to NT$2.03 from NT$1.85 of the comparable quarters of 2012 in spite of profit erosion by the NT-dollar-to-US-dollar devaluation in the third quarter.
Kao Fong Machinery Co., Ltd. saw its earnings for the first three quarters hit new high of NT$1.22 per share, far better than NT$0.22 per share made for the same period of 2012.
Roundtop Machinery Industries Co., Ltd. earned EPS of NT$0.97 for the first three quarters of 2013, with October EPS of NT$0.06, swelling the company's earnings for the first 10 months to NT$1.03 per share.
The Anderson Group netted NT$0.55 for the first three quarters thanks to recovering business in the United States.
Shieh Yih Machinery Industry Co., Ltd. earned NT$1.02 per share for the first three quarters.
Falcon Machine Tools Co., Ltd. was the only underperformer in Taiwan's machine-tool industry, losing NT$0.62 per share in the first three quarters this year. (KL)
Q1-Q3 ‘13 Earnings at Taiwan's Machine Tool Makers
| Stock code
| Company
| Revenue
| Operating Income
| Pre-Tax Earnings
| Net Income
| EPS
|
| 1528
| Anderson
| NT$2.4bn
| NT$73M
| NT$102M
| NT$82M
| NT$0.55
|
| 1530
| AWEA
| NT$2.1bn
| NT$156M
| NT$201M
| NT$155M
| NT$1.69
|
| 1540
| Roundtop
| NT$666M
| NT$70M
| NT$89M
| NT$77M
| NT$0.97
|
| 1583
| Goodway
| NT$4.2bn
| NT$407M
| NT$476M
| NT$360M
| NT$2.79
|
| 2049
| Hiwin
| NT$8.5bn
| NT$1.4bn
| NT$1.5bn
| NT$1.1bn
| NT$5.01
|
| 4510
| Kao Fong
| NT$1.4bn
| NT$120M
| NT$121M
| NT$100M
| NT$1.12
|
| 4513
| Falcon
| NT$1.5bn
| -NT$18M
| -NT$11M
| -NT$30M
| -NT$0.62
|
| 4526
| Tongtai
| NT$5.5bn
| NT$295M
| NT$287M
| NT$287M
| NT$0.99
|
| 4533
| Shieh Yih
| NT$2.9bn
| NT$172M
| NT$205M
| NT$144M
| NT$1.02
|
| 6609
| Taiwan Takisawa
| NT$2bn
| NT$171M
| NT$178M
| NT$144M
| NT$2.03
|