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Tire Maker Kenda Reports March Revenue up 44.46% on Brisk Market Demand

2014/04/24 | By Steve Chuang

Mainly driven by strong market demand in North America, China, Europe and Central and South America, Kenda Rubber Industrial Co., Ltd., a leading Taiwanese supplier of tires for bicycles, motorcycles, cars and industrial vehicles, reported revenue of NT$3.104 billion (about US$103.46 million) for March, surging 44.46% month-on-month or 17.09% year-on-year, according to the firm's latest financial statement.

Noteworthy is that the firm's sales revenue from tires (it also produces wheels at its U.S. plant.) hit a single-month high of NT$2.9 billion (US$96.67 million) in March, indicative of the increasingly bullish global market for tires.

For Q1, 2014, the company's overall revenue reached NT$7.908 billion (US$263.9 million), up 16.73% year-on-year, according to its financial report.

Kenda indicates that market demand has significantly soared since the end of the Chinese New Year holidays, hence driving both its domestic sales and exports. With seasonable booms hitting the industry, the company adds, outlook in the second quarter will likely be even brighter.

Based on observation of current market situation, institutional investors generally project Kenda's revenue for the second quarter to near NT$10 billion (US$333.33 million), and total about NT$36 billion (US$1.2 billion) for the whole year, mainly thanks to strongly recovering global economy.

To keep pace with market demand, Kenda will expand daily tire capacity at the factories in China's Tianjin and Taiwan's Yunlin to 13,000 and 8,000 units, respectively.

Also, Kenda is optimistic that its sales of car tires, particularly those for higher-end sedans, in China will soar this year, primarily because the Chinese government has stepped up its rural urbanization plan, which will sustain local consumer demand for higher priced tires in smaller cities. (SC)