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Goodway to See Revenue Growth Month by Month in Q2

2014/04/11 | By Steve Chuang

With its current capacity fully booked throughout the second quarter of this year, Goodway Machine Corp., a Taiwanese leading supplier of CNC (computer numerically controlled) turning machines and machine tools, expects its revenue to grow month by month during the period, according to the firm.

Goodway says that Taiwan's machine tool sector is gradually recovering for the moment, reflected in the steady influx of orders the firm has received recently, mostly from local makers of bicycle parts and components, and particularly molds and dies for automotive applications, such as sheet metal, headlamps, and interior accessories.

Edward Yang, Goodway's CEO, confirms that the firm's domestic sales have actually increased steadily over the past few years to contribute more to overall revenue, with such proportion standing at 35%, compared to 30% in 4Q, 2013 and 27% two years ago.

Mainly driven by strong domestic market demand, Goodway has NT$800 million in orders, including about NT$300 million newly received in March alone, hence making its factories kept busy throughout the second quarter. For the first two months of this year, the firm raked in NT$936 million in consolidated revenue, sharply up 26.51% from the same period of last year. Institutional investors project the firm's consolidated revenue in March to exceed NT$600 million.

In response to steadily increasing orders, Goodway has invested NT$600 million in constructing a plant in Wujian City, Jiangsu Province, southeastern China, in association with Taiwan-based Awea Mechantronic Co., Ltd., a double-column machining center company affiliated with Goodway, who holds orders of NT$1.3 billion. The plant is scheduled to become operational in October.

Meanwhile, the two firms' other planned  factory in Chiayi County, southern Taiwan, will start up early next year with annual output of around NT$2 billion, with construction to get under way in mid-2014.

With market outlook brightening, along with its new factory to add to capacity, Goodway is expected by institutional investors to finish this year with consolidated revenue of NT$7.5-8 billion and EPS (earnings per share) of up to NT$5. Last year, the firm's consolidated revenue and EPS reached NT$5.882 billion and NT$4.04, respectively.

At an investor conference held earlier, Yang said that his company will gain steam this year largely from strong demand in four downstream sectors, automotive, aerospace, medical instrument and energy, with sales to medical instrument customers to surge 80% relative to others. With capacity being continuously expanded, the CEO said, Goodway and Awea both aim to be among the world's top-10 suppliers of machine tools by 2020. (SC)