TECO Steps up Global Deployment for Better Profitability in 2014
2014/05/28 | By Steve ChuangMotivated by positive economic outlook worldwide, Taiwan-based TECO Electric & Machinery Co., Ltd., globally top-3 industrial motor supplier by size, is aggressively enhancing global deployments to achieve better profitability in 2014 than last year.
As part of its development strategy this year, the firm is setting up a logistic center in Europe to scramble for orders for motors, particularly high-efficiency models on an OEM (original equipment manufacturing) basis, considering that EU has mapped out new regulations designed to completely replace conventional motors with premium efficiency models in the near future.
Meanwhile, given that the Japanese government has also begun stopping sales of IE2 motors and promoting use of higher-efficiency IE3 models by 2015 as part of its energy-efficiency policy, to generate business opportunities worth about NT$230 billion in the short term, TECO therefore plans to set up a motor assembly plant in the country to supply a full range of high-efficiency motors ranging from 0.75kW to 375kW, including universal motors, explosion-proof motors, aluminum-housed lightweight motors and rolled steel frame motors, aiming to emerge as Japan's largest foreign supplier of motors.
In North America, TECO's biggest revenue source globally, the firm is going to expand its lineup at its existing plant in Texas, especially motors for heavy electrical equipment, to target local shale gas suppliers and explore the huge business opportunities brought by U.S.'s surging shale gas production.
Benefiting from growing global trends for high-efficiency motors and driven by its new businesses, including wind turbines and auto electronics, TECO is expected by institutional investors to see performance notably surge in the second half of this year, and finish the whole year with a 10-year high of NT$2.2 in EPS (earnings per share).
In 2013, the firm scored consolidated revenue of NT$56.619 billion (about US$1.8873 billion), net profits of NT$3.76 billion (US$125.33 million) and EPS of NT$2.01, significantly surging from NT$48.604 billion (US$1.6201 billion), NT$2.965 billion (US$98.83 million) and NT$1.63, respectively, posted a year ago. (SC)
| TECO's Performance by Year | |||||
| Year
| 2009
| 2010
| 2011
| 2012
| 2013
|
| Consolidated Revenue
| NT$40.034 Bn.
| NT$44.995 Bn.
| NT$46.776 Bn.
| NT$48.604 Bn.
| NT$56.619 Bn.
|
| Net Profits
| NT$1.957 Bn.
| NT$2.492 Bn.
| NT$2.783 Bn.
| NT$2.965 Bn.
| NT$3.760 Bn.
|
| EPS
| NT$1.09
| NT$1.38
| NT$1.54
| NT$1.63
| NT$2.01
|